Gretchen,a Certified Public Accountant,was Hired by a Retail Hardware Store

Gretchen,a Certified Public Accountant,was hired by a retail hardware store to perform an audit on the store's financial statements.In the agreement for this engagement was a clause stating that the audited financial statements would be used "to renew the inventory financing line of credit from Third National Bank." Gretchen completed the audit and issued an unqualified opinion.The client obtained the financing from Third National Bank.Unfortunately,Gretchen had been negligent in conducting the audit,and the inventory had been greatly overstated.As a result,there was inadequate collateral for the loan,and when the hardware store went bankrupt a few months later,Third National Bank suffered a loss.Under which of the rules for an accountant's liability to third parties could Third National Bank recover from Gretchen?

A) the foreseeability standard
B) the foreseeability standard and the Restatement (Second) of Torts
C) the Ultramares doctrine
D) the Ultramares doctrine and the foreseeability standard
E) the Ultramares doctrine,the Restatement (Second) of Torts,and the foreseeability standard