Henry Hatfield, CPA, was hired to prepare audited financial statements for Happy Campers, a nonprofit organization providing

Question:

Henry Hatfield, CPA, was hired to prepare audited for Happy Campers, a nonprofit organization providing summer camp scholarships for inner-city, low-income children. The executive director of Happy Campers was embezzling but falsified records that Hatfield used in his audit. First Bank gave Happy Campers a $100,000 loan based on Hatfield's certified financials. The embezzlement was discovered, and Happy Campers defaulted on vthe loan. Can First Bank recover its loss from Hatfield?
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...