Assume a land development company hired an engineer and architecture firm to conduct a feasibility study on a potential land purchase. The report indicated that the land was suitable for development. Later, zoning requests are denied and the land development firm sues the engineer and architecture firm for negligence, breach of contract, restitution, and reliance.
The AICPA issued a Guide for Complying with Rule 102-508 using an approach of threats and safeguards. How could we apply this to this case? What are some of the risks of things that could go wrong, and what could be put in place to prevent or reduce bad things from happening?