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:

Simultaneous Experience

Experiencing two or more sensory inputs or cognitive processes at the same time.

Learning Occur

The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, and preferences.

Guthrie

Refers to Edwin Ray Guthrie, a psychologist known for his "one trial learning" theory, emphasizing the importance of contiguity in learning.

Guthrie

Refers to Edwin Ray Guthrie, a psychologist known for his theory that learning is based on a stimulus-response association.