Watts and williams a cpa firm audited the accounts of

Reference no: EM13602748

Watts and williams a cpa firm audited the accounts of sampson skins. the firm knew that sampson wanted that number of copies of the auditors report to furnish to the bank and other potential lenders auditirs supplied sampson with 20 copies upon completing the audit.

The balance sheet was misstated by $800,000.00.instaed of having a $600000 net worth the corporation was insolvent. assets were overstated by $500000 and a nonexisting accounts receivable of $300000 and inventory. the boxes were empty.Martinson relied on the audited financial statement loaned Sampson $200,000 he seeks to recover his loss from Watts.

Required: State whether each of the following is True or False . Explain

a. If Martinson alleges and proves negligence on the part of Watts and Williams , he will be able to recover his loss.
b If Martison alleges and proves constructive fraud he will recover his
lose.
c Martison does not have contract with with Watt and Williams.
d Martinson is a third party beneficiary of the contract, Watts and Williams made with Sampson Skins.
e .unless actual fraud on the part of Watts and Williams can be shown, Martinson can not recover.

Reference no: EM13602748

Questions Cloud

If so how would you as the leader responsible for the : the drive to incorporate sustainability into every corporations operations is a growing trend in the global economy.

Which products if any should be processed furtherif all : lamar corporation uses a joint process to produce products a b and c. each product may be sold at splitoff or processed

Kinsley and sons has sales of 185 million they had earnings : kinsley and sons has sales of 185 million they had earnings of 13 million. the web sales department is considering a

Ring company can sell a maximum of 1000 units of each size : ring company manufactures two tables small and large. the following data is available small large selling price per

Watts and williams a cpa firm audited the accounts of : watts and williams a cpa firm audited the accounts of sampson skins. the firm knew that sampson wanted that number of

The product normally sells for 160 per unit texas company : texas company produces and sells 22000 units of a single product. costs associated with this level of production are as

Marquita filters produces an air filter for use in jet : marquita filters produces an air filter for use in jet aircraft. parts are added at several points in the production

Case study -narda corporation agreed to sell all of its : case study -narda corporation agreed to sell all of its capital stock to effie corporation for three monthly payments

Proton company which begin operations in 2009 invests its : proton company which begin operations in 2009 invests its idle cash in trading securities. the following transactions

User Account

All Pages