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Chapter: 20 / Q: 20.2
What is meant by proportionate liability? Contrast this legal doctrine with the doc- trine of joint and several liability
Chapter: 20 / Q: 20.3
For what types of actions are auditors liable to a client under common law? Why would the client prefer to sue the auditor for a tort action rather than for a breach of contract?
Chapter: 20 / Q: 20.4
What elements must a client prove to maintain an action against an auditor for negligence?
Chapter: 20 / Q: 20.5
Distinguish among the four standards that have evolved for defining auditors\' liabil- ity for ordinary negligence to third parties under common law. Why is this area of auditors\' liability so complex?
Chapter: 20 / Q: 20.6
Distinguish between the Securities Act of 1933 and the Securities Exchange Act of 1934. Why is it easier for a plaintiff to sue an auditor under the Securities Act of 1933?
Chapter: 20 / Q: 20.7
What elements must a plaintiff prove in order to win action under Rule 10b-5 of the Securities Exchange Act of 1934? What was the significance of the outcome of the Ernst & Ernst v. Hochfelder case for auditors\' liability?
Chapter: 20 / Q: 20.8
What were the most significant components of the Private Securities Litigation Reform Act of 1995 and the Securities Litigation Uniform Standards Act of 1998? Did the ruling in Tellabs v. Makor make it easier or harder to hold auditors liable for fraud? Why?
Chapter: 20 / Q: 20.9
In what ways does the Sarbanes-Oxley Act change criminal liability for auditors of public companies?
Chapter: 20 / Q: 20.10
What types of sanctions can the SEC and the PCAOB impose on auditors?
Chapter: 20 / Q: 20.11
How does the Dodd-Frank Act affect the auditing profession?
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