The U.S. Supreme Court ruled in State Street v. Ernst that:
A) The court may "construct" fraud based on gross negligence of the auditor.
B) The auditor engaged in an act in connection with the purchase or sale of a security that caused the loss to the plaintiff
C) Breach of duty is not required to establish fraud
D) The auditor has no legal liability for fraud to third parties
Correct Answer:
Verified
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