Suppose Mary is a CPA and John hires her to create a financial audit for the purpose of securing a loan from BigBank,and Mary prepared the report with this purpose in mind.Suppose further that John defaults on his loan contract with BigBank.If BigBank decides to sue Mary,BigBank can argue that Mary owed it a duty of care.

Question

Quizplus · Accepted Answer

When Mary prepared the financial audit report with the specific purpose of helping John secure a loan from BigBank, she owed a duty of care to BigBank to ensure that the report was accurate and reliable. If John defaulted on his loan and BigBank suffered losses as a result of relying on the report, they may have a valid claim against Mary for breaching this duty of care.

Suppose Mary Is a CPA and John Hires Her to Create