Question: What did the Ernst & Ernst v . Hochfelder case establish? Auditors cannot be held liable under the Securities Exchange Act of 1 9 3

What did the Ernst & Ernst v. Hochfelder case establish?
Auditors cannot be held liable under the Securities Exchange Act of 1934 for ordinary negligence.
Auditors are liable for negligence to all third parties relying on financial statements.
Auditors must provide absolute assurance in all audit reports.
Auditors are not responsible for detecting fraud in financial statements.

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