4. Hamish purchased the securities of the ABC Corporation (ABC), whose stock is traded on the New York Stock Exchange. Hamish believes he lost over $100,000 on those securities after ABC's president admitted that ABC's financial statements contained statements about the profitability of ABC which were significantly exaggerated. Andy Accountant (AA) had audited those statements and had issued an unqualified opinion that they complied with GAAP. Hamish has now brought an action against AA under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. To succeed, Hamish must prove that: A. Hamish was in privity of contract with ABC and/or AA. B. Hamish was a foreseeable user of the financial statements audited by AA. C. AA's actions materially aided and abetted the wrongful acts of ABC. D. AA acted with scienter. 5. Under the Private Securities Litigation Reform Act of 1995, which of the following actions must an auditor undertake if she determines that the public company client has committed an illegal act with a material impact on the client's financial statements? A. Make an 8-K filing with the SEC within four business days of the accountant's determination. B. Calculate the prospective impact on the client's financial statements and, unless the impact is inconsequential, inform the client's management and audit committee. C. File a Form 95 Report with the Public Company Accounting Oversight Board. D. Maintain the confidentiality of the information under the Federal Professional- Client Privilege