1. Able & Company CPA is hired by Carla to perform an audit of her business's financial statements. Carla explains to Able that First National Bank is requiring the audit before it will give Carla a loan. Able perform the audit Negligently and issues an unqualified opinion even though the financial statements contain material misstatements. Carla defaults and as a result of the uncollectible debt, the First National Bank goes bankrupt. because of First National Banks bankruptcy some of its customers were unable to collect their deposits. Another creditor of Carla, Second National Bank also loses substantial amount due to its inability to collect from Carla. all these parties are suing Able. Abel's liability to Second National Bank
   1. not liable since the performance of the auditor did not meet the definition of constructive fraud
   2. liable since the performance of the auditor did meet the definition of constructive fraud
   3. not liable since the performance of the auditor did not meet the definition of ordinary negligence
   4. not liable since the performance of the auditor did not meet the definition of gross negligence
   5. liable since the performance of the auditor did meet the definition of gross negligence
   6. liable since the Auditors performance meets the definition of negligence and in the case of an audit opposed to a review is liable to reasonable third parties
   7. not liable since there's no contract between the auditor and the party seeking damages
   8. liable since the auditor new and intended that this work would be used by third-party seeking damages
   9. not liable since the engagement letter did not name the party seeking damages
   10. liable since the party seeking damages is a member of an identifiable group of users that have relied on the CPA's work such as creditors even though this party was not specifically known to the CPA at the time the work was done
   11. liable since the party seeking damages is the one that the auditor should have reasonably been able to foresee as a likely user of the client's financial statements
   12. liability would depend on the jurisdiction as the party seeking damages is a member of reasonably limited and identifiable group of foreseen users that have relied on CPAs work such as creditors
   13. liability would depend on jurisdiction since the party seeking damages is the one that the audience should have reasonably been able to foresee as a likely user of the client's financial statements