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Nastasia [14]
3 years ago
9

Hark, CPA, failed to follow generally accepted auditing standards in auditing the financial statements of Long Corp., a nonpubli

c company. Hark also took several tax return positions that were not likely to be sustained on the merits because they were not supported by substantial authority. Long’s management had told Hark that the audited statements and tax returns would be submitted to several banks to obtain financing. Relying on these documents, Third Bank gave Long a loan. Long defaulted on the loan. In a jurisdiction applying the traditional common law doctrine, if Third sues Hark, Hark will
Social Studies
2 answers:
Snowcat [4.5K]3 years ago
7 0

Answer: Hark will win because Hark and Third were not in privity of contract

Explanation:

He'd win because he wasn't in a privity Contract

shutvik [7]3 years ago
6 0

Answer:

win because Hark and Third were not in privity of contract

Explanation:

Based on the scenario being described within the question it can be said that the if Third sues Hark, Hark will win because Hark and Third were not in privity of contract. This refers to a relationship between the various parties of a contract which allows them to sue each other but does not allow a third party to sue them. Which is the case in this scenario.

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