A 1940 case, Maryland Casualty Co. v. jonathon Cook, illustrates that:

a. Auditors are responsible to detect material embezzlements.

b. Auditors are culpable to clients who carry surety bonds on employees.

c. Auditors are liable to parties who acquire a client's rights by subrogation.

d. Auditors' liability under common law is dependent on the terms of the audit services contract.

Choose the correct answer.