stylistic:style_transfer, linguistic:paraphrasing
Restatement of Torts (foreseen user) approach

The "foreseen" or "Restatement Standard" approach was established by the American Law Institute ’s (ALI) Second Restatement of Law of Torts. With this approach the auditor is liable to all third parties in which their reliance is foreseen even if the auditor doesn't know the third party. This approach came about due to Rusch Factors, Inc. v. Levin. In this case, the CPA was found accountable for ordinary negligence to the third party who had not been specifically identified but the CPA was aware that the financial statements were to be used by this party.