The precedent set by the Ernst & Ernst v.Hochfelder case is generally believed to have increased auditors' legal liability.

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The Ernst & Ernst v. Hochfelder case established that auditors must be proven to have acted with scienter, or intent to deceive, in order to be held liable under Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, thereby not necessarily increasing auditors' legal liability but rather setting a high bar for proving fraud.

The Precedent Set by the Ernst & Ernst V