Answer Happy

Accountant's Liability
RAY Ok, the financial statement you asked me to prepare is
for whom?
LAURA For a company interested in buying our company.
RAY So the financial statement that includes a list and
valuation of your assets you've asked me to prepare -- it's
for them.
LAURA Actually, it's for me. You prepare it for me, I give
it to them. Their climate could change, or we could find
somebody else. I can't tell you for certain who's going to see
this.
RAY But you're planning on giving it to the potential
acquiror.
LAURA Yes.
RAY Ok, if I could just verify that Onyx has these assets
before I put my signature on the report. Is that going to
be a problem?
LAURA It's not...a problem. Ordinarily that would be our
procedure. But right now we just don't have time.
RAY Well, Ms. Gaddis, with all due respect, I have a
duty to the recipient of this information. Anybody that
receives it will interpret my signature as confirmation
that...what it states is true.
LAURA I appreciate your ethics as always, Ray. But I'm
telling you, time is of the essence here. Whatever duty you
have to anyone else, your principal duty is to me.
RAY But if you're using my word to show that you possess
these assets –
LAURA I'm not. I'm just asking you value a list of assets
I've given you. Your only obligation is to make sure that
you don't misvalue any of them. If there's a problem with the
list itself, that's not your fault, it's mine.
RAY Well, I think that's hairsplitting.
LAURA No, that's your job.
RAY Well, if I can't show that you have these assets, I'm
going to have to issue a qualified opinion and a disclaimer to
...whoever you try to sell to.
LAURA No, that would violate your duty of
confidentiality. Which is also a duty you owe specifically to
me.
RAY People rely on accountants to make accurate
assessments, Ms. Gaddis. If they don't, the market can't
work.
LAURA An interesting philosophical point. However, the
acquiror is not paying you. I am. But all you need to do
right now is go get your calculator and value this list of
assests.
RAY Without asking you whether you have what's on it?
LAURA Yes.
RAY Let me ask you straight -- do you have everything
that's on that list?
LAURA Yes. Go get your calculator.
LAURA I should be able to hire somebody, and have them do
what I ask. My employees are liable to me, and I'm
liable to the people I do business with. Why doesn't this
accountant behave like one of my employees?
RAY There is no question that an accountant owes a
professional duty by contract to the client, but it's a
luxury for an accountant to believe he or she can...just
do what he's asked, and that the system will take care of
itself without the accountant having liability. People
are going to rely on the documents I sign. Does it matter that
they haven't hired me directly? Could I be held liable to
third parties who see or use my reports or financial
statements?
NARRATOR Is Ray legally bound to maintain
confidentiality to his client when he suspects that
assets are being misrepresented?
using this narrative, answer the question given by the narrator,
within a paragraph or two or whatever reasonable