expanding peos Consequently, it hired several junior accountants, including a man named Small be 5-21 (OBJECTIVE S-5) The CPA firm of Bigelow, Barton, and Brown was ners of the firm eventually became dissatisfied with Small's productivity and war. they would be forced to discharge him unless his output increased significantly At that time, Small was engaged in audits of several clients. He decided that to audit programs prepared by the partners. One of the CPA firm's clients, Newest cop ration, vous din serious financial difficulty and had adjusted several of the accounts bei audited by Small to appear financially sound. Small prepared fictitious audit documenti tion in his home at night to support purported completion of auditing procedures asignac to him, although he in fact did not examine the adjusting entries. The CPA firm rendered unmodified opinion on Newell's financial statements, which were grossly misstated. Se cral creditors, relying on the audited financial statements, subsequently extended large sum of money to Newell Corporation. ed Will the CPA firm be liable to the creditors who extended the money because of their reliance on the erroneous financial statements if Newell Corporation should fail to pay them? Explain." 5-22 (OBJECTIVES 5-3, 5-5) Doyle and lencanan. Inc., a