Mortimore Beancounter, CPA, is employed by the accounting firm Doolittle & Prosper, LLP. He was assigned to audit Cook & DeBooks, Inc. Failing to discover that the companys financial statements contained a material mistake, Mortimore rendered an unqualified audit opinion. Unbeknownst to Mortimore, Cook & DeBooks later used the statements and his opinion to secure a loan from Last National Bank. Cook & DeBooks subsequently went bankrupt. Cook & DeBooks and the Bank later sue Mortimore and Doolittle & Prosper for negligence.

A) What is the likely result of the lawsuit between Cook & DeBooks and Doolittle & Prosper and state why?

B) What is the likely result of the lawsuit between Cook & DeBooks and Last National Bank and state why?