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Question
Fact Pattern 51-1Allen is Beta Corporation's accountant. On Allen's advice, Beta reports a certain transaction as a gain in its 2004 financial statements. The next year, Beta plans to make a public offering of its stock on April 1. The offering is delayed when the Securities and Exchange Commission concludes that Beta's 2004 statements are incorrect and requires them to be restated. The delay causes the stock to be sold when, due to unrelated factors, the price is lower than it is on April 1.Refer to Fact Pattern 51-1. Under the reasoning of the court in Case 51.1, Oregon Steel Mills, Inc. v. Coopers & Lybrand, LLP, the "harm-producing force" is
a. Allen's offering his advice to Beta.
b. Beta's applying Allen's advice to its financial statements.
c. Beta's making the public offering despite the delay.
d. the action of market forces on the price of Beta's stock.
Answer
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