Ailing company's liabilities exceed its assets. Ailing hires Brad, an accountant, to entity balance sheet showing a
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Ailing company's liabilities exceed its assets. Ailing hires Brad, an accountant, to entity balance sheet showing a positive net worth. Credit Bank relies on the balance sheet to under the Ultramares rule to Ailing. The firm defaults on the loan. Under the Ultramares rule, Brad is most likely not liable because he
A. Finished his work before Ailing’s loan and default
B. is not responsible for his client’s finances
c. did not owe a duty of care to any third party
d. was not in privity with the bank
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Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
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