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Nancy Is an Auditor

question 31

Essay

Nancy is an auditor.She works in a state that uses the Ultramares Doctrine.She fraudulently prepared financial documents for her client,Star,Inc.Her client presented the information to Moonglow,Inc.Moonglow was a potential creditor of Star,Inc. ,and was seriously damaged by the fraudulent financial information.Moonglow sued Nancy.She claims she is not liable to Moonglow,a third party,since she was not provided with its name at the time the audit was prepared.Is she liable to Moonglow? Explain.


Definitions:

Net Price

The actual price paid for a product or service after subtracting any discounts, rebates, or allowances from the list price.

Green Thumb Nursery

A business specializing in plants, gardening supplies, and expert advice for gardening enthusiasts.

Power Saw

A tool that uses electricity or battery power to operate a moving blade, commonly used for cutting wood, metal, or other materials.

Trade Discount

A reduction from the list or retail price of a product, given by sellers to buyers in the business-to-business market.

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