Section 12 Causation
| Library | Prof Liability 2005 |
Causation requires a plaintiff to prove that the accountant’s breach of duty was the proximate cause of the purported damages. In an accountant’s malpractice matter, causation is one of the more thorny issues. The defense should consider the multitude of superseding and intervening causes, including:
- market conditions
- poor management
- competition; and
- the plaintiff’s reliance on the audited financial statements
The defense should question the reasonableness of this reliance along with the degree of...
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