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Following His Accounting Firm's Audit Team Being Hired by Canuck

Question 4

Multiple Choice

Following his accounting firm's audit team being hired by Canuck Inc.to review Northern Ltd.'s books,Tysan contacted several members he knew in the profession,advising them to buy Northern's shares.Trading in Northern's stock notably increased in ensuing weeks,driving the share price up and making it more expensive for Canuck to complete the takeover.When the securities commission completed its investigation,which of the following was most likely a finding with respect to Tysan?


A) The firm will avoid vicarious liability as Tysan acted independently.
B) The firm employing Tysan, not Tysan, owed a fiduciary duty to Canuck.
C) Tysan breached the fiduciary duty to maintain confidentiality of client information.
D) The claimant's loss was too remote from the professional's actions.

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