Following are 8 statements with missing terms involving auditor legal liability.
1. Under the Ultramares Doctrine, an auditor is generally not liability for _____ to third parties lacking _____.
2. The auditor will use a defense of _____ in a suit brought under the 1933 Securities Act.
3. After passage of the Private Securities Litigation Reform Act, auditors generally have _____ liability in federal securities cases.
4. The broadest class of third parties under common law is known as _____.
5. Based on the ruling in Hochfelder v. Ernst & Ernst, an auditor generally must have knowledge and _____ to be found guilty of a violation of Rule 10b-5 of the 1934 Act.
6. Under the 1933 Act, plaintiffs do not have to demonstrate _____ , but need merely demonstrate the existence of a _____.
7. _____ is generally only available as a defense in suits brought by clients.
8. A third party lacking privity will often be successful in bringing a claim against the auditor if they can demonstrate_____ or _____.
Terms
a. Due diligence
b. Reliance on the financial statements
c. Fraud
d. Ordinary negligence
e. Separate and proportionate
f. Contributory negligence
g. Intent to deceive
h. Privity of contract
i. Gross negligence
j. Foreseen users
k. Material error or omission

Required
For each of the 11 blanks in statements 1 through 8, identify the most appropriate term. No term can be used more than once.