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1) Accountants and auditors may be held liable to both their clients and third parties under common law. What must a client prove to recover its losses from the auditors under common law? If you are a practicing accountant, how would you work to protect yourself from these claims?
2) When you and a fellow classmate graduate and both pass the CPA exam, the student approaches you and wants to join forces to create a new accounting business with you. What options will you consider and what will you ultimately tell your classmate?
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