Prepared the annual audit

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Reference no: EM131181293

For almost 13 years, Touche Ross had prepared the annual audit of Buttes Gas and Oil CO. Buttes wanted to obtain a loan from Dimensional Credit Corp. (DCC) and showed DCC its most recent annual audit. DCC made the loan on the basis of what it learned from the audit. The loan was not repaid, and DCC then realized that it had been misled by negligent statements about Buttes’s financial condition that appeared in the annual statement prepared by Touche Ross. Would DCC be able to recover against Touche Ross for its negligence in preparing the report?

Reference no: EM131181293

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