First Cardinal Bank Has Used the  StoneCipher Accounting Firm  for Over

question 23

Essay

First Cardinal Bank has used the  StoneCipher accounting firm  for over twenty years. Orville, a customer of First Cardinal, approached Alfred, a StoneCipher partner, at a local business owner's networking luncheon. Orville asked about the bank's financial stability. Although Alfred knew that the bank's stock was overvalued because of some questionable loans, he felt a considerable amount of loyalty to First Cardinal for being a good customer of his accounting firm. Alfred told Orville that StoneCipher had just finished an audit of the bank, and that the bank was as sound as the Rock of Gibraltar. The next day Orville bought 800 shares of First Cardinal . One month later, the bank's losses became the subject of a major financial scandal. Orville is angry and wants to sue. Does he have a case?

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Definitions:

Small Business Administration

The Small Business Administration is a U.S. government agency established to support the growth and development of small businesses through loans, loan guarantees, counseling, and other assistance programs.

Government Lender

A governmental entity or agency that provides loans or financial assistance to individuals, businesses, or other organizations.

Government Lending Programs

Financial programs sponsored by governmental entities to provide loans to individuals or businesses for various purposes.

Small Businesses

Companies with a small number of employees and relatively low volume of sales, often privately owned.