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Question: Weiss, an accountant, prepared the usual accounting


Weiss, an accountant, prepared the usual accounting records for Malucic, the owner of a clothing store. Malucic entered into negotiations with Walling for the sale of the business, using the records prepared by Weiss to justify a high purchase price. After the transaction was complete, Walling discovered that the business potential had been greatly exaggerated and there was little chance the clothing store would ever reach the potential suggested by the records. After discussing the matter with his own accountant, Walling concluded that he had been deceived by Weiss’s financial reports.
a. Does Walling have a course of action against Malucic?
b. Does Walling have a course of action against Weiss?
c. Do accountants have a responsibility to persons other than their clients?

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