Choose the option that best indicates, in terms of the Auditing Profession Act, when an auditor can be held liable to a third party who reliedon the opinion expressed by the auditor in audited financial statements.

a.If it can be proven that the auditor was negligent in expressing the opinion, or making his/her report or statement, that the third partyrelied upon the opinion, report or statement, and suffered loss as a result of the reliance and that the auditor knew or reasonablycould have been expected to know that the third party would rely on the opinion, report or statement.

b.If it can be proven that the auditor was negligent in expressing the opinion, or making his/her report or statement and that the thirdparty relied upon the opinion, report or statement, and suffered loss as a result of the reliance.

c.If it can be proven that the auditor was negligent in expressing the opinion, or making his/her report or statement and that theauditor knew or reasonably could have been expected to know that the third party would rely on the opinion, report or statement.

d.If it can be proven that the third party relied upon the opinion, report or statement, and suffered loss as a result of the reliance andthat the auditor knew or reasonably could have been expected to know that the third party would rely on the opinion, report orstatement.