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Which of the following is an accurate statement regarding recent actions brought against accountants ...

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Which of the following is an accurate statement regarding recent actions brought against accountants ...

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: 17^th

Authors: Arens, Elder, Beasley, Hogan

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