Brittany, Loletha, Hockaday. and Katherine. (BLHK), CPAs, were engaged by Jones Financial Company to audit the financial statements of ABC Company, a closely held corporation. BLHK was told when engaged that Jones Financial needed reliable statements to determine whether to invest in the bonds of ABC. BLHK performed the audit negligently, because of excessive absences from the job of one of its partner. As a result, it failed to discover substantial defalcations by Kiara. the ABC controller. Jones Financial bought the bonds, but it would not have done so if the defalcations had been uncovered. After discovery of the fraud, Jones promptly sold the bonds at a loss of $800,000. Explain what liability, if any. BLHK has to Jones Financial. If ABC also sues BLHK for negligence. what are the probable legal defenses that lessthanorequalto Tia. the BLHK's defense attorney would raise? Explain Will the negligence of BLHK prevent it from recovering on a liability insurance covering the practice of its profession? Explain