The Landmark Case That Stated Criteria for Auditors' Liability to Third

question 43

Multiple Choice

The landmark case that stated criteria for auditors' liability to third parties for gross negligence or fraud,but not ordinary negligence,was

• A) Smith v. London Assurance Corp.
• B) Ultramares Corp. v. Touche.
• C) 1136 Tenants' Corp. v. Max Rothenberg & Co.
• D) McKesson & Robbins Inc.

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Definitions:

Unconscious Conflicts

Mental struggles that are not within the conscious awareness but influence behaviors and emotions.

Sigmund Freud

A pioneering neurologist and the founder of psychoanalysis, known for his theories on the unconscious mind, dreams, and psychosexual development.

Conscious Awareness

The mental state of being fully present and aware of one's thoughts, feelings, sensations, and environment.

Insight Therapy

Insight Therapy is a form of psychotherapy aimed at increasing a patient's awareness of underlying motives and defenses, facilitating personal growth through understanding.