Harriet Harrison, CPA, failed to adhere to standards applicable to tax return preparers when preparing the returns of Lamp Corp. As a result, a material fraud by the company's CFO was not detected. Based on nonstatutory law, to what extent is Harrison liable to Lamp Corp. for losses attributable to the theft?
A. No liability because the ordinary return preparation cannot be relied upon to detect defalcations.
B. No liability because privity of contract is lacking.
C. Liable for losses attributable to her negligence.
D. Liable only if it could be proven that she was grossly negligent.
Answer: C. Liable for losses attributable to her negligence.
Business
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According to the text, the typical focus group costs the client about $6,500
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