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Unformatted text preview: of contract, negligence, gross negligence/constructive fraud, and fraud, under common law. A client would prefer to sue an auditor for a tort action because larger amounts for damages can be assessed than for a breach of contract. 2-4. What elements must a client prove to maintain an action against an auditor for negligence? There are four elements required for establishing an auditor's liability for negligence to clients; they include (1) the duty to conform to a required standard of care, (2) failure to act in accordance with that duty, (3) a causal connection between the auditor's negligence and the client's damage, and (4) actual loss or damage to the client....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 470 taught by Professor Kwong during the Spring '11 term at Franklin.
- Spring '11