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:

Heinz Dilemma

A moral dilemma experiment designed by Lawrence Kohlberg to assess the moral reasoning stage of an individual, involving a man stealing medicine to save his wife's life.

Moral Decisions

Choices made by individuals that are evaluated based on principles of right and wrong or ethical considerations.

Moral Development

Moral Development is the process through which individuals evolve their understanding of right and wrong and apply these concepts in their behavior.

Gender Differences

The distinctions in characteristics and behaviors typically associated with being male or female in a given society.