Daniel, a certified public accountant, was hired by vast hardware store to
perform an audit on the store's financial statements. in their agreement was a
clause stating that the audited financial statements would be used "to obtain
further inventory financing from second bank or another local bank." daniel
completed the audit and issued an unqualified opinion. eventually vast
hardware obtained the financing from sharp national bank - which is another
local bank. unfortunately, daniel had been negligent in conducting the audit,
and the inventory had been greatly overstated. as a result, there was
inadequate collateral for sharp's loan, and when vast hardware went bankrupt
a few months later, sharp bank suffered a loss. under which rule or rules for
accountant's liability to third parties could sharp national bank recover from
daniel? (discuss all rules that may apply)

Shawshank real estate agency. oct. 1 pete shawshank begins business as a real estate agent with a cash investment of $25,000 in exchange for common stock. 2 hires an administrative assistant. 3 purchases office furniture for $2,900, by paying $700 cash with the balance on account. 6 sells a house and lot for n. kidman, earning a fee of $3,600, with $600 collected in cash and the balance billed to n. kidman. 27 pays $900 on the balance related to the transaction of october 3. 30 pays the administrative assistant $2,300 in salary for october. 31 collects $1,200 of the balance owed by n. kidman. instructions: (a) journalize the transactions. (you may omit explanations.) (b) what balance would shawshank real estate agency report for accounts payable in its october 31 financial statements? in which category of which financial statements would it be found? (c) what balance would shawshank real estate agency report for accounts receivable in its october 31 financial statements? in which category of which financial statements would it be found?