Color Dyne printed patterns on carpets After reviewing the companys audited financial statements, the plaintiff s provided materials to Color Dyne on credit These financial statements showed that Color Dyne owned $2 million in inventory The audit failed to reveal, however, that various banks held s...

Color-Dyne printed patterns on carpets. After reviewing the companys audited financial statements, the plaintiff s provided materials

Question:

Color-Dyne printed patterns on carpets. After reviewing the company’s audited the plaintiff s provided materials to Color-Dyne on credit. These showed that Color- Dyne owned $2 million in inventory. The audit failed to reveal, however, that various banks held secured interests in this inventory. The accountant did not know that the company intended to give the to plaintiff s or any other creditors. Color-Dyne went bankrupt. Is the accountant liable to plaintiffs?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...