Choice "D" is correct. The majority rule (the law followed in the majority of the states) is that accountants are liable to anyone in a class (such as potential lenders or investors) of third parties whom the CPA knows will rely on the opinion of the financial statements.
Choice "a" is incorrect. This describes a more limited extent of CPA liability than is the case under the majority rule.
Choice "c" is incorrect. In all states, the CPA's liability extends beyond the client.Choice "b" is incorrect. This describes a broader extent of liability than is the case under either the majority rule or the minority rule.