The customers have instituted legal action against Donalds based on Section 10b and Rule 10b-5 of the Securities Exchange Act of 1934. Which of the following is likely to be Donalds’ best defense?
MULTIPLE CHOICE QUESTIONS FROM CPA EXAMINATIONS 5-14 (OBJECTIVES 5-4, 5-5) The following questions concern CPA firms’ liability under com-mon law. Choose the best response.a. In a common law action against an accountant, lack of privity is a viable defense if theplaintiff(1) is the client’s creditor who sues the accountant for negligence.(2) can prove the presence […]