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| A CPA audited the financial statements of Dodd Company. The CPA was negligent in the audit. Sanco, a supplier of Dodd, is upset because Sanco had extended Shelly a high credit limit based on the financial statements which were incorrect. Which of the following statements is the most correct? A. Generally, Sanco can recover but Dodd cannot. B. In most states, both Dodd and Sanco can recover from the CPA for damages due to the negligence. C. In most states, Sanco cannot recover as a mere foreseeable third party. D. States that use the Ultramares decision will allow both Dodd and Sanco to recover. |