Discuss whether you believe Horton will be found liable to the purchasers of common stock.
5-23 (OBJECTIVES 5-5, 5-6) In order to expand its operations, Gibson Corp. raised $5 millionin a public offering of common stock, and also negotiated a $2 million loan from CitizensNational Bank. In connection with this financing, Gibson engaged Horton & Co., CPAs, toaudit Gibson’s financial statements. Horton knew that the sole purpose of the audit […]