Which of the following parties is most likely to recover against auditors for losses resulting from acts of ordinary negligence?
A)Third parties that auditors should have foreseen could rely on the client's financial statements.
B)The auditors' client.
C)Purchasers and sellers of securities under the Securities Exchange Act of 1934
D)Third parties whose reliance on the client's financial statements was reasonably foreseeable.

Question

Quizplus · Accepted Answer

The auditors' client is most likely to recover against auditors for losses resulting from acts of ordinary negligence because the auditors have a direct contractual relationship with the client, which establishes a duty of care.

Which of the Following Parties Is Most Likely to Recover