RAY Ok, the financial statement you asked me to prepare is for whom?

LAURA For a company interested in buying our company.

RAY So the financial statement that includes a list and valuation of your assets you've asked me to prepare -- it's for them.

LAURA Actually, it's for me. You prepare it for me, I give it to them. Their climate could change, or we could find somebody else. I can't tell you for certain who's going to see this.

RAY But you're planning on giving it to the potential acquiror.

LAURA Yes.

RAY Ok, if I could just verify that Onyx has these assets before I put my signature on the report. Is that going to be a problem?

LAURA It's not...a problem. Ordinarily that would be our procedure. But right now we just don't have time.

RAY Well, Ms. Gaddis, with all due respect, I have a duty to the recipient of this information. Anybody that receives it will interpret my signature as confirmation that...what it states is true.

LAURA I appreciate your ethics as always, Ray. But I'm telling you, time is of the essence here. Whatever duty you have to anyone else, your principal duty is to me.

RAY But if you're using my word to show that you possess these assets –

LAURA I'm not. I'm just asking you value a list of assets I've given you. Your only obligation is to make sure that you don't misvalue any of them. If there's a problem with the list itself, that's not your fault, it's mine.

RAY Well, I think that's hairsplitting.

LAURA No, that's your job.

RAY Well, if I can't show that you have these assets, I'm going to have to issue a qualified opinion and a disclaimer to ...whoever you try to sell to.

LAURA No, that would violate your duty of confidentiality. Which is also a duty you owe specifically to me.

RAY People rely on accountants to make accurate assessments, Ms. Gaddis. If they don't, the market can't work.

LAURA An interesting philosophical point. However, the acquiror is not paying you. I am. But all you need to do right now is go get your calculator and value this list of assests.

RAY Without asking you whether you have what's on it?

LAURA Yes.

RAY Let me ask you straight -- do you have everything that's on that list?

LAURA Yes. Go get your calculator.

LAURA I should be able to hire somebody, and have them do what I ask. My employees are liable to me, and I'm liable to the people I do business with. Why doesn't this accountant behave like one of my employees?

RAY There is no question that an accountant owes a professional duty by contract to the client, but it's a luxury for an accountant to believe he or she can...just do what he's asked, and that the system will take care of itself without the accountant having liability. People are going to rely on the documents I sign. Does it matter that they haven't hired me directly? Could I be held liable to third parties who see or use my reports or financial statements?

NARRATOR Is Ray legally bound to maintain confidentiality to his client when he suspects that assets are being misrepresented?

using this narrative, answer the question given by the narrator, within a paragraph or two or whatever reasonable

Answer rating: 100% (QA)

Answer As per given Situations iBecause Ray is legally bound to client to maintain co... View the full answer