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?

Privity:first and foremost approach is existence of privity between auditor and third party. under common law, auditors are not liable to their parties when there is no privity relation between the both. privity means the contract that exists between the parties and when the auditor fails to perform his duty with care, it results in breach of the duty between auditor and third party. Near Privity, Foreseen persons or classesReasonable, foreseen third parties.