27. Regarding auditors' legal liability, consider the following: "The privity requirement under the [court case] doctrine Does not apply when the auditor is charged with fraud. Furthermore, while Judge Cardozo followed a strict privity doctrine in the [court case] case, he opened the door for third parties without privity to sue if the negligence was so great as to constitute gross negligence, also known as constructive fraud." The court case involved is a. C.I.T. Financial Corporation. Rusch Factors, Inc. versus Levin. c. Ultramares Corporation vs. Touche. d. 1136 Tenants' Corp vs. Max Rothenberg & Co