Dewey, Cheatem, & Howe, CPA's, were retained by Tom Slick, sole proprietor of the Slick Construction Company to audit Slick's financial statements, Slick advised the accounting firm that he needed audited financial statements because he was going to take his company public, calling it Slick Construction, Inc. The CPA firm commenced with the Slick audit, applying Generally Accepted Auditing Standards. The firm, however, failed to detect that: 1) Slick intentionally accelerated revenues to show net income for the year (although the company really had a net loss); 2) Slick failed to disclose a $4,000,000 loan from his father-in-law in the financial statements, and 3) Slick intentionally failed to disclose $1,982,340 of uncollectible bad debts, The auditors issued an unqualified opinion, stating that Slick's accounting records fairly represented the company's financial position. Thanks to Dewey Cheatem & Howe's audit, Slick Construction, Inc. was able to raise $475 million in the compariy's initial public offering, and another $600 million in credit lines from the underwriting banks, The scheme came apart when shareholder Phillip Francis Queeg, a forensic accounting instructor, noticed the irregularities in the prospectus, and other documentation of Slick Construction, Inc. When all was said and done, investors and creditors suffered losses in excess of 771 million, and the company filed for bankruptcy, Slick was eventually convicted on criminal charges of mail fraud, wire fraud, grand larceny, and insider trading. Discuss the potential liability that Dewey, Cheatem & Howe, CPA's might sustain as a result of its audit. Be sure to explain the reasons for your