Plaintiffs bringing action under common law need not prove
A) They have a "reliance letter" from auditors.
B) They were damaged or suffered a loss.
C) The financial statements contained a material misstatement.
D) Auditors failed to exercise the appropriate level of professional care and were responsible for the damages.

Question

Quizplus · Accepted Answer

Plaintiffs bringing action under common law do not need to prove that they have a "reliance letter" from auditors. However, they must prove that they were damaged or suffered a loss, that the financial statements contained a material misstatement, and that auditors failed to exercise the appropriate level of professional care and were responsible for the damages.

Plaintiffs Bringing Action Under Common Law Need Not Prove