Spratt,an accountant,deliberately falsified a financial statement she was preparing for Aniline Industries.Gladden and Jarvis invested in Aniline based on the statement.A banker at Kidston National Bank also relied on the statement in deciding to make a loan to Aniline.When Gladden,Jarvis,and Kidston National Bank learned of the deception,they told Spratt that they were going to bring suit against her.Spratt told them that a court would never rule in their favor because they were not known third parties.Was Spratt correct? Why or why not?

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The Answer of Spratt,an accountant,deliberately falsified a financial statement she was preparing for Aniline Industries.Gladden and Jarvis invested in Aniline based on the statement.A banker at Kidston National Bank also relied on the statement in deciding to make a loan to Aniline.When Gladden,Jarvis,and Kidston National Bank learned of the deception,they told Spratt that they were going to bring suit against her.Spratt told them that a court would never rule in their favor because they were not known third parties.Was Spratt correct? Why or why not?

Spratt,an Accountant,deliberately Falsified a Financial Statement She Was Preparing for Aniline