To win a lawsuit against an auditor,third parties generally have to prove which of the following?

Question

Quizplus · Accepted Answer

To win a lawsuit against an auditor, third parties generally have to prove all of the above factors: (A) The parties suffered a loss, (B) A loss occurred due to reliance on misleading financial statements, and (C) The auditor knew or should have known the financial statements were misleading. All three of these factors must be present for a successful lawsuit against an auditor.

To Win a Lawsuit Against an Auditor,third Parties Generally Have