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

As a CPA, Barbara has a duty of care to exercise professional competence in performing her services. Ben, as a third party who relies on Barbara's certification of the financial statement, is considered a foreseeable beneficiary of her contract with Banana Computers. Therefore, in most states, Barbara may be liable to Ben for negligence in performing her services as a third party beneficiary of her contract with Banana.

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