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djnextlevel djnextlevel
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Which of the following is an accurate statement regarding recent actions brought against accountants by clients and third parties?

▸ Litigants will first seek state remedies because of the availability of class-action litigation.

▸ Gross negligence by the auditor must be proven under the Securities Acts of 1933 and 1934.

▸ The greatest growth in CPA liability litigation has been under the federal securities laws.

▸ The amount of damages that plaintiffs can receive is greater under common law than under the federal securities laws.
Textbook 

Auditing and Assurance Services


Edition: 17th
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packar11packar11
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The greatest growth in CPA liability litigation has been under the federal securities laws.

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