California Court of Appeal May 3, 1996, B085773 (Soderberg v. McKinney)

Opinion

MASTERSON, J.

In

Bily

v.

Arthur Young & Co.

(1992) 3 Cal.4th 370 [11 Cal.Rptr.2d 51, 834 P.2d 745], the Supreme Court held that an auditor may be liable to a third party—someone other than a client—who relies on an audit report containing negligent misrepresentations, provided the auditor intended that the third party use the report.