In a Leading Securities Law and CPA Liabilities Case, the U.S.Supreme

question 55

Multiple Choice

In a leading securities law and CPA liabilities case, the U.S.Supreme Court ruled in 1976 in Hochfelder v.Ernst & Ernst that before CPAs could be held liable for Rule 10b-5 of the Securities Exchange Act of 1934, what would be required to be shown to the court was the auditor's:

• A)ordinary negligence.
• B)gross negligence.
• C)knowledge and intent to deceive.
• D)financial gain at the expense of the plaintiff.

---

Definitions:

Work Experience

The practical knowledge or skills that a person gains through performing jobs in a particular field or occupation.

Job Satisfaction

The level of contentment individuals feel with their job, including aspects like work environment, role, and compensation.

Diagnostic Tool

An instrument or method used to identify, define, or assess problems, conditions, or diseases.

Physical Health

The state of well-being of the body, devoid of illness, injury, or pain, often achieved through proper nutrition, exercise, and rest.