Holtz Rubenstein Reminick, CPAs, audited year-end financial statements of Quality Food Brands, Inc. and related companies. Signature

Question:

Holtz Rubenstein Reminick, CPAs, audited year-end of Quality Food Brands, Inc. and related companies. Signature Bank, relying upon the audited financial reports prepared by Holtz Rubenstein Reminick, extended a term note to Quality in the principal sum of $10,000,000. Quality subsequently filed a petition under Chapter 7 of the United States Bankruptcy Code, and Signature Bank only then learned of various false and misleading statements contained in the audited financial reports. Explain whether Signature bank can recover damages for negligent misrepresentation?
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...