Q: Beckler & Associates, CPAS, audities and expressed an unqualified opinion on the financial statements of Queen co. The Financial statements contained misstatements that resulted in a material overstatement of Queen's net worth. Queen provided the audited financial statements to Mac Bank in connection with a loan made by Mac to Queen. Beckler knew that the financial statements would be provided to Mac. Queen defaulted on the loan. Mac sued Beckler to recover for its losses associated with Queen's default. Which of the following must Mac prove to recover?

I. Beckler was negligent in conducting the audit

II. Mac relied on the financial statements.

A) neither I nor II

b) I only

c) both I and II

d) II only

I got this question from Gleim. However, I thought the answer would be B. I only But the answer is C. both I and II.

This case is negligent case and in negligent plaintiff doesn't need to prove reliance but why is II also correct?

Can anyone help me on this question to understand???

Thank you!