Walker is liable for the loss because the information provided by his accountantwas inaccurate. However, the question is the liability of Blanchard to the third party,William and Go Carts. Third-party liability involves an examination of the accountants'status. When recognized, the liability is based on the actual reliance of the third party onthe work of the accountant (Twomey, 2022). A rule used to pass judgement on thirdparty liability is the known user rule. This rule states that accountants are liable to thirdparties when the accountant is aware the third party will be using their work product.Blanchard was aware that his work would be used for the selling of MMGGC. It isdifficult to prove against negligence when the accountant has a specific purpose forpreparing the documentation (Goldwasser, 1988, p. 228). In this case, the court shouldfavor the plaintiff and have returns for their losses from the defendant