Multiple Choice $2$ points

CPA Krogrtad l$\text{'}$s the executive in charge of the Omaha office of the audit firm. He is responsible for the practice in all areas of audit, tax, and consulting, but he does not serve an a field audit partner or a reviewer, CPA Ward is the partner in charge of the Dodger, Inc. audit $($an SEC filing$).$ The audit furm's independence is impaired if:

Krogstad owns Dodfer common stock.

Krogead's brother owns $10$ shares of Dodger common stock.

Ward's sister$-$in$-$law is a sales representative with a territory in California.

Ward's fellow partner CPA Felix in the Omaha office has a wife who owns Dodger stock through a mutual fund held in her own employer's employee benefit plan.

$8$ Multiple Choike $2$ points

When bringing suit against auditors under Section $10($b$)$ of the Securities Exchange Act of $1934,$ plaintiffs munt allege and prove: