Go to this text’s Web site at academic. cengage.com/blaw/clarkson and select “Chapter 51.” Click on “Video Questions” and view the video titled Accountant’s Liability. Then answer the following questions.
(a) Should Ray prepare a financial statement that values a list of assets provided by the advertising firm without verifying that the firm actually owns these assets?
(b) Discuss whether Ray is in privity with the company interested in buying Laura’s advertising firm.
(c) Under the Ultramares rule, to whom does Ray owe a duty?
(d) Assume that Laura did not tell Ray that she intended to give the financial statement to the potential acquirer. Would this fact change Ray’s liability under the Ultramares rule? Explain.