Max, a certified public accountant, went to First Florida Bank, N.A., to negotiate a $500,000 unsecured line of credit for C.M. The audited financial statements that Mitchell gave the bank did not indicate that C.M. owed any money. In fact, C.M. owed at least $750,000 to several banks. First Florida approved the loan, but C.M. never repaid it. The bank filed a suit in Florida state court against Max and his company, alleging negligence. Explain why Max is liable for the bank's loss.