What are the policy reasons for holding accountants liable

Assignment Help Management Theories
Reference no: EM131662359

Question: Hypothetical Question with Sample Answer. The accounting firm of Goldman, Walters, Johnson & Co. prepared financial statements for Lucy's Fashions, Inc. After reviewing the various financial statements, Happydays State Bank agreed to loan Lucy's Fashions $35,000 for expansion. When Lucy's Fashions declared bankruptcy under Chapter 11 six months later, Happydays State Bank promptly filed an action against Goldman, Walters, Johnson & Co., alleging negligent preparation of financial statements. Assuming that the court has abandoned the Ultramares approach, what is the result? What are the policy reasons for holding accountants liable to third parties with whom they are not in privity?

Reference no: EM131662359

Questions Cloud

Discuss the accountant liability under given rule : Accountant's Liability under Rule 10b-5. In early 1995, Bennett, Inc., offered a substantial number of new common shares to the public.
Method of pairwise comparison : An election is held among five candidates (A, B, C, D, and E). There are 37 votes. Using the Method of Pairwise Comparison it is found that A, B, and C
How many voice communications can be supported : Capacity calculation - how many voice communications can be supported per cell. Given 10MHz spectrum, and assume every user needs 30KHz for a voice.
Career possibilities available to supply management : Discuss the career possibilities available to Supply Management professionals in first ten years of this century.
What are the policy reasons for holding accountants liable : What are the policy reasons for holding accountants liable to third parties with whom they are not in privity?
Consider the weighted voting system : Consider the weighted voting system [18: 12, 10, 6]. Consider a sequential coalition {P1, P3, P2}. Who is the pivotal player?
Find the smallest value that the quota q can take : Find the smallest value that the quota q can take.
What are the consequences of perkins failure : What are the consequences of Perkins's failure to adopt generally accepted accounting principles?
If there are 16 teams to play in a tournament : If there are 16 teams to play in a tournament, where each team will play every other team once. Then how many matches will take place?

Reviews

Write a Review

Management Theories Questions & Answers

  Learning in action

Learning contract proposal that will form the basis of your learning contract report.

  Change is the only constant

"Change is the only constant " Evaluate the different types of change that have occurred in Sony.

  How do advertisers try to use group influence

How do advertisers try to use group influence?  Will you find any specific examples and explain the relevant theory of group behavior and influence?

  Case study:saving sony

You have been appointed by Sony as a consultant on change management. Advise Sony on how they could implement the change by using the various theories of change you have learnt.

  How the stock market works

The purpose of this project is to help you to gain an understanding of how the stock market works and of the relationship between theory and practice.

  Find the optimal production quantities

Find not only the optimal production quantities, but also the optimal total cost.

  Describe the management process

Describe the management process and identify the skills required to manage business organizations.

  Case study : bert''s bonsai and aquatic sport museum

Case Study : Bert's Bonsai and Aquatic Sport Museum Prepare a knowledge management system.

  Knowledge management techniques

Demonstrate understanding of the many-sided nature of knowledge management

  Theory of transtheoretical model

Demonstrate understanding of the many-sided nature of knowledge management

  Write a paper on historical trends of management

Write a paper on Historical Trends of Management.

  Theory of reasoned action

Theory of Planned Behavior and Integrated Behaviors Model

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd