1 What is the legal relationship of an independent accountant (auditor) to a client? Explain. 2 What is the legal duty of skill and care that the accountant-client relationship imposes upon the accountant? Explain. 3 Compare the accountant's common law liability to clients and third parties for actual fraud committed by the accountant with the accountant's liability to them for ordinary negligence. Explain. 4 In addition to the civil liability imposed upon the accountant, certain federal statutes impose criminal liability on those preparing financial statements. List three well-known statutes which have so imposed liability and with which accoun- tants are frequently concerned. 5 a What is meant by privileged communication? Explain. b Does the common law recognize the existence of a privilege insofar as the accountant-client relationship is concerned? Explain. c Assuming that the accountant-client relationship is privileged, who has the right to waive the privilege? Explain.