There are several reasons why the potential legal liability of CPAs for professional "malpractice" exceeds that of physicians and other professionals. Which of the following is the MAIN reason:

Select one:

a. All of them.

b. The federal Securities Acts regarding CPAs' liability are unique in that much of the burden of proof is shifted to the defendant. Normally, defendants are "presumed innocent until proven guilty." Under the federal Securities Acts, however, CPAs charged with "malpractice" must prove their innocence.

c. One reason is the vast number of people who may sustain damages. If a physician or attorney commits a serious error, the number of injured parties generally is limited to one individual patient or client. When a CPA's report is in error, literally millions of investors may sustain losses.

d. When investors sustain losses in the many millions of dollars, the economics of the situation dictates bringing suit against the CPAs even if the prospects for recovery appear remote. When the possible dollar recovery is smaller, which usually is the case in other professional malpractice suits, the plaintiffs are more likely to be deterred from filing suit simply by the costs of litigation.

Answer rating: 100% (QA)

Answer The correct answer is A All of them There are several reasons why the potential legal liabili... View the full answer