Match the important cases listed below with the appropriate legal precedent or implication.
a. Hochfelder v. Ernst
b. Escott v. BarChris Construction Corp.
c. Credit Alliance v. Arthur Andersen & Co.
d. Ultramares v. Touche & Co.
e. Rosenblum v. Adler
f. Rusch Factors, Inc. v. Levin
g. United States v. Simon (Continental Vending)
1. A landmark case establishing that auditors should be held liable to third parties not in privity of contract for gross negligence, but not for ordinary negligence.
2. A case in which the court used the guidance of the Second Restatement of the Law of Torts to decide the auditors’ liability to third parties under common law.
3. A landmark case in which the auditors were held liable under Section 11 of the Securities Act of 1933.
4. A case in which auditors were held liable for criminal negligence.
5. A case that established that auditors should not be held liable under the Securities Exchange Act of 1934 unless there was intent to deceive.
6. A case that established the precedent that auditors should be held liable under common law for ordinary negligence to all foreseeable third parties.
7. A common law case in which the court held that auditors should be held liable for ordinary negligence only to third parties they know will use the financial statements for a particular purpose.

  • CreatedOctober 25, 2014
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