FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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2)  Blue Corporation located and doing business in Cleveland, Ohio hired Mr. Harold Glick CPA, licensed in the state of Pennsylvania, to conduct an audit of its books, and to prepare a financial statement for a loan application to be made by July 1. Mr. Harold Glick made every reasonable attempt to comply with the deadline, but could not finish the report on time due to the delays caused by Blue Corporation's personnel not timely providing the needed information. After July 1,  the audit was completed and provided to Blue Corporation.  However, it now refuses to pay Harold Glick for the audit and threatens to sue him for having lost the loan Blue Corporation applied for after July l.  

Mr.Glick seeks your advice regarding his rights, and what course of action he should pursue.  

Be Sure To State The Applicable Rule: 

∙ Apply the rule to the facts 

∙ Explain the reason for your decision.

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