Barbara, a CPA, fails to discover a fairly obvious error in the books of her client, Banana Computers.If Ben relies on Barbara's certification of the financial statement in deciding to accept the position of president of the company, Barbara will:

Question

Quizplus · Accepted Answer

Barbara could be liable to Ben as a third party beneficiary of her contract with Banana Computers because Ben relied on the accuracy of the financial statements she certified in making his decision to accept the position of president. Courts often recognize that CPAs owe a duty to third parties who rely on their work, especially in cases where the reliance was foreseeable.

Barbara, a CPA, Fails to Discover a Fairly Obvious Error