B is corrent because in a common-law action against an accountant, the lack of privity is a viable defense if the plaintiff is a creditor of the client who sues the accountant for negligence. Parties are not considered to have privity of contract with the accountant when the undertaking of the audit was not for their express purpose.
A is incorrect because clients and third-party primary beneficiaries are considered to have privity of contract with the accountant.
C is incorrect because in a common-law action against an accountant based on fraud, the accountant is liable not only to those parties considered to have privity, but to other third parties who relied on the misrepresentation.
D is incorrect because in a common-law action against an accountant based on gross negligence which amounts to a reckless disregard for the truth (i.e., constructional fraud), the accountant is liable not only to those parties considered to have privity, but to other third parties who relied on the misrepresentation.
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