Question: Consider an auditors common law liability to third parties. Please describe the difference between the three levels of failure to exercise professional care, ordinary negligence,

Consider an auditor’s common law liability to third parties. Please describe the difference between the three levels of failure to exercise professional care, ordinary negligence, gross negligence and fraud. Based on the case information, please comment on the possible level of failure that was seemingly exhibited by Friehling & Horowitz. Are there any factors that you believe could be used in defense of the auditing firm?

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