Question $14(4$ points$)$

Which of the following is a correct statement related to CPA legal liability under

common law?

CPAs are guilty until they prove that they performed the audit with "good faith."

CPAs are normally liable to their clients, the shareholders, for either ordinary or

gross negligence.

CPAs are liable for either ordinary or gross negligence to identified third parties

for whose benefit the audit was performed.

CPAs may escape all personal liability through incorporation as a limited liability

corporation.

CPAs are not liable for either ordinary or gross negligence to identified third

parties for whose benefit the audit was performed.