Which of the Following Parties Is Most Likely to Recover

question 43

Multiple Choice

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.

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Definitions:

Ventral Body

Pertaining to the front or anterior part of the body; opposite to the dorsal side.

Vagus

A cranial nerve that interfaces with the parasympathetic control of the heart, lungs, and digestive tract.

Taste

A sense that detects flavors in substances, primarily recognized via taste buds on the tongue.

Chemical Stimulus

A type of stimulus involving chemicals that can initiate a biological response in an organism or cell.