It has been Its penalties are harsher 10 Which of the following should auditors know in regard to potential lu Whether the plaintiffs have privity of contract. Whether the allegations are for ordinary or gross negligence. Defenses available to the auditors (the defendants). All of the above options are correct. 24. Assurance, attestation and auditing are similar because all three represent a common process of auditors taking information prepared by management and providing an opinion compiling and reviewing historical statements and providing non-financial information. compiling historical financial statements and providing non-financial information. reviewing financial information and examining internal controls. 25. What is a due diligence defense? The plaintiffs relied upon the statements that contained material misstatements and the plaintiffs lost money on their investments. The plaintiffs relied on the statements and they took reasonable steps to mitigate their losses from the date of discovery. The auditors must show they were independent, performed the audit with due professional care and evidence gathered was sufficient and component. The auditors did not have nan engagement letter signed by management. d