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Question
Dora, a certified public accountant, provides accounting services to Eagle Corporation. The services include preparing Eagle's financial reports and issuing opinion letters based on the reports. In 2006, Eagle falls into serious financial trouble, but neither Dora's reports nor her opinion letters indicate this situation. Relying on Dora's portrayal of Eagle's financial situation, Eagle borrows a large sum of money to build a new shipping facility. In lending Eagle the money, First National Bank relies on Dora's opinion letter Dora is aware of this reliance. If Dora did not engage in intentional fraud but was negligent, what is her potential liability?Answer
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