Which answer is correct and why?

George works forGillooly AccountingLLP as a senior accountant. Gillooly is hired to audit the financial statements of Slade Corporation because Slade is applying for a bank loan from Heritage Bank. George fails to follow generally accepted auditing standards (GAAS) when completing the audit, and the financial statements overstate Slade's income substantially. Heritage Bank grants the loan. At the same time, Slade is in the middle of a search for a new CFO and shows Doris, a desirable candidate, the company's audited financial statements. Doris decides to join Slade, but, unfortunately, it goes bankrupt in six months.Heritage Bank sues Gillooly Accounting LLP for damages, and Doris sues Gillooly Accounting LLP for lost wages. What is the likely outcome? (A) Gillooly is liable to both Heritage Bank and Doris.(B) Gillooly is liable to Heritage Bank but not to Doris. (C)Gillooly is liable to Doris but not to Heritage Bank. (D) Gillooly is not liable to either Heritage Bank or Doris.

Stone Family Cattle Ranch is located on a large plot of land in northwest Texas. The land includes an isolated wetlands area that is not connected to any other body of water. The Environmental Protection Agency (EPA) claims that the ranch requires a federal permit to discharge materials, or dredge, in the wetlands on the property.The Stone Family sues the EPA.What is the key issue in the case likely to be? (A) Whether private ownership of wetlands is permitted by law. (B) How much pollution the Stone Family is looking to discharge into the wetlands. (C) Whether any protected species live on the wetlands.(D)Whether the wetlands are navigable waters pursuant to the Clean Water Act.