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Which of the following correctly states the law as it applied to CPA's prior to The Grant Thornton v. Prospect High Income Fund case?

a. Prior to The Grant Thornton v. Prospect High Income Fund case, with regard to CPAs who published audited financial statements in Texas, CPAs were liable only to users of financial statements who gave notice to the CPA of their use. Prior to The Grant Thornton v. Prospect High Income Fund case, this was the law in the State of Texas as it applies to a CPA's civil liability.

b. Prior to The Grant Thornton v. Prospect High Income Fund case, with regard to CPAs who published audited financial statements in Texas, CPAs were liable to users of financial statements who gave notice to the CPA of their use, and who the CPA would reasonably foresee using the financial statements. Prior to The Grant Thornton v. Prospect High Income Fund case, this was the law in the State of Texas as it applies to a CPA's civil liability.

c. Prior to The Grant Thornton v. Prospect High Income Fund case, with regard to CPAs who published audited financial statements in Texas, CPAs were liable to users of financial statements who gave notice to the CPA of their use, and who the CPA would reasonably foresee using the financial statements, and were liable for "holder" claims. Prior to The Grant Thornton v. Prospect High Income Fund case, this was the law in the State of Texas as it applies to a CPA's civil liability.

d. None of the other choices are correct.

e. Prior to The Grant Thornton v. Prospect High Income Fund case, with regard to CPAs who published audited financial statements in Texas, CPAs were liable only to users of financial statements who gave notice to the CPA of their use. Prior to The Grant Thornton v. Prospect High Income Fund case, this was the federal securities law as it applies to a CPA's civil liability.

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