A group of investors sued Anderson, Olds & Watershed, PAs, for alleged damages

suffered when the company they held common shares in went bankrupt. In order to

avoid liability under the common law, Anderson, Olds & Watershed must prove

which of the following?

The investors relied on the financial statements audited by Anderson, Olds &

Watershed.

The investors' loss was a direct result of their reliance on the audited financial

statements.

The audit was conducted in accordance with generally accepted auditing

standards and with due professional

The investors actually suffered a loss.