Texscan Corporation (Texscan) was a corporation located in Phoenix, Arizona. The company was audited by Coopers &

Question:

Texscan Corporation (Texscan) was a corporation located in Phoenix, Arizona. The company was audited by Coopers & Lybrand (Coopers), a national CPA firm that prepared audited financial statements for the company. The Lindner Fund, Inc., and the Lindner Dividend Fund, Inc. (Lindner Funds), were mutual funds that invested in securities of companies. After receiving and reviewing the audited financial statements of Texscan, Lindner Funds purchased securities in the company. Thereafter, Texscan suffered financial difficulties, and Lindner Funds suffered substantial losses on its investment. Lindner Funds sued Coopers, alleging that Coopers was negligent in conducting the audit and preparing Texscan’s financial statements. Can Coopers be held liable to Lindner Funds for accounting malpractice under the Ultramares doctrine, Section 552 of the Restatement (Second) of Torts, or the fore see ability standard? Lindner Fund v. Abney, 770 S. W. 2d 437, 1989 Mo. App. Lexis 490 (Court of Appeals of Missouri)

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... Mutual Funds
Mutual funds are like a pool of funds gathered by different small investors that have simalar investment perspective about returns on their investments. These funds are managed by professional investment managers who act smartly on behalf of the... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...