Individuals who believe they relied on misstated financial statements to make a decision andhave suffered losses as a result will issue an action known as aa. Breach of contract.b. Tort.c. Securities litigation.d. Constructive fraud.

a.) Identify the purposes or applications of the Statute of Frauds.A purpose of the Statute of Frauds is to ensure that contracts formed for fraudulent purposes are preserved in writingb.)outline the penalties for committing fraud in certain kinds of contractsc.)enforce the full execution of oral contractsd.)prevent one party from falsely claiming that a contract was formed in certain areas of exchange

What does a third-party user of financial statements have to prove under common law in a suit against an auditor for the auditor's negligence? Explain each item with an example

1) Using the categories included in the professional standards, inappropriately and intentionally failing to expense expired amounts of the prepaid insurance is an example of     a)misappropriation of assets. b)other illegal acts. c)fraudulent financial reporting. d)direct effect illegal act   2)A financial statement audit should be designed to obtain reasonable assurance that the financial statements are free of material misstatement due to:   a)misappropriation of assets only. b)fraudulent financial reporting only.c)neither fraudulent financial reporting nor misappropriation of assets. d)both fraudulent financial reporting and misappropriation of assets