In a Common Law Action Against Auditors,lack of Privity Is

question 47

Multiple Choice

In a common law action against auditors,lack of privity is a viable defense if the plaintiff

• A) is the client's creditor who sues auditors for ordinary negligence.
• B) can prove gross negligence by auditors that amounts to a reckless disregard for the truth.
• C) is the auditors' client.
• D) bases the action upon fraud.

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Definitions:

Technique

A systematic procedure, method, or art applied by a particular task, performance, or craft.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or pressures.

Asch

Solomon Asch was a psychologist best known for his work on conformity experiments, demonstrating how group pressure could influence individuals to conform to incorrect answers.

Milgram

Refers to Stanley Milgram, an American social psychologist known for his controversial experiment on obedience to authority figures, conducted in the 1960s.