33. Which case was tried under the RICO act?

a. Arthur Andersen

b. Reves v. Ernst & Young

c. United States v. Simon

d. Continental Vending

34. Which of the following cases reaffirmed the principles (known user) in the Ultramares case? It was also a near privity case.

a. Credit Alliance

b. Rosenblum

c. Ernst & Ernst v. Hochfelder

d. Escott v. BarChris

35. Which statement best expresses the factors that purchasers of securities registered under the Securities Act of 1933 need to prove to recover losses from the auditors? (see 4j)

a. The purchasers of securities must prove ordinary negligence by the auditors and reliance on the audited financial statements.

b. The purchasers of securities must prove that the financial statements were misleading and that they relied on them to purchase the securities.

c. The purchasers of the securities must prove that the financial statements were misleading, then the burden of proof is shifted to the auditors to show that the audit was performed with due diligence.

d. The purchasers of securities must prove that the financial statements were misleading, and the auditors were negligent.

36. Which of the following is most frequently necessary to hold a CPA liable to a client? (Is also applies to the SEC 1933 Act..the auditor must prove it) (4i)

a. acted with scienter or guilty knowledge.

b. was not independent of the client.

c. failed to exercise due care.

d. did not use an engagement letter.