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

question 59

Multiple Choice

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:

• A) in most states be liable to Ben as a third party beneficiary of her contract with Banana.
• B) be liable to Ben only if she has a contract with Ben.
• C) not be liable if Ben is not a party to the original contract.
• D) not be liable to Ben unless Ben notified Barbara in advance of his intention to rely on the financials.

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Definitions:

Tend-And-Befriend Response

A stress response theory that emphasizes a pattern where individuals seek social affiliation and support as a means to cope with stress, contrasting the "fight-or-flight" mechanism.

Fight-Or-Flight

An innate response to a potential damaging situation, aggression, or risk to life preservation.

Catharsis

The process of releasing and thereby providing relief from strong or repressed emotions through particular activities or experiences.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for rapid action in response to threats, often referred to as the "fight or flight" system.