29. Which of the following approaches to auditors liability is least desirable (broad or more far reaching) from the CPAs perspective? It means more people can sue auditors.

a. The Ultramares approach.

b. The Rosenblum approach

c. The Restatement of Torts approach (Rusch Factor)

d. The Foreseen User approach.

30. Who is the person who initiates the lawsuit by filing a complaint?

a. plaintiff

b. defendant

c. auditor

d. party against which an action is brought

31. Misrepresentation by a person of a material fact, known by that person to be untrue is:

a. breach of contract

b. negligence

c. fraud

d. statutory law

32. The 1933 and 34 Securities Acts were referred to by a Supreme Court Justice as:

a. The RICO Acts

b. Blue Sky Laws

c. Reves vs. Ernst & Young Acts

d. Racketeering Acts