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MARCH 2009 BUSINESS LAW CHAPTER 47 DEBRA BARONE ANSWERS TO QUESTIONS AND CASE PROBLEMS 1. No, it is not a defense. Not knowing that the CFA were to use the financial statements to obtain a bank loan does not make the accountant not liable for his actions. Obtaining a bank loan is foreseeable. 2. No, she was not liable because the creditors were not known by Roanne as those who would receive the financial statements. 3. Yes, they can recover. The accountant did not inform the Ronsons of the accrued interest and this is malpractice. The accountant would have to pay back the accrued interest that was not divulged to the Ronsons. 4. No, this defense was not valid. Just because Shatterproof was not the accountant's client does not stop Shatterproof from suing. If accountants prepare statements on which third parties are relying upon, those third parties can recover their losses if the statements were false. 5.
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