In common law litigation against auditors,third parties must prove that they relied on financial statements.

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In common law litigation against auditors, third parties must prove that they relied on financial statements. This is known as the "reliance requirement" and is a key element in determining liability for auditors in cases involving third-party claims. The reliance requirement means that third parties must show that they actually relied on the financial statements when making their investment or other business decision, and that their reliance was reasonable given the circumstances.

In Common Law Litigation Against Auditors,third Parties Must Prove That