Marquis Company's Liabilities Exceed Its Assets,but the Firm's Employees Falsify

question 56

Multiple Choice

Marquis Company's liabilities exceed its assets,but the firm's employees falsify its books to reflect a positive net worth.Marquis hires Nan & Ollie,an accounting firm,to prepare a balance sheet,which is certified to show a positive net worth.Pure Credit Corporation relies on the balance sheet to make a loan to Marquis.When the firm defaults,Pure Credit files a suit against Nan & Ollie.Under the Ultramares rule,the accounting firm is most likely

• A)liable because Nan & Ollie owed a duty of care to all third parties.
• B)liable because Nan & Ollie owed a duty of care to Marquis.
• C)liable because Nan & Ollie owed a duty to any foreseeable user.
• D)not liable because Nan & Ollie and Pure Credit were not in privity.

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