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Based on the ruling in Hochfelder v. Ernst & Ernst, an auditor generally must have knowl- edge and ___________ to be found guilty of a violation of Rule 10b-5 of the 1934 Act.

MULTIPLE CHOICE QUESTIONS FROM BECKER CPA EXAM REVIEW LEGAL LIABILITYDISCUSSION QUESTIONS AND PROBLEMS 5-17 (OBJECTIVES 5-3, 5-4, 5-5, 5-6) Following are eight statements with missing terms involving auditor legal liability. 1. ________________ is generally only available as a defense in suits brought by clients. 2. Under the Ultramares doctrine, an auditor is generally not liable […]

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