What are the auditor’s possible defenses against lawsuits filed under the Securities Exchange Act of 1934?

CIVIL LIABILITY UNDER THE FEDERAL SECURITIES LAWS

1. What are the four major sources of auditors’ legal liability?
2. Compare and contrast traditional auditors’ legal responsibilities to clients and third-party users under common law. How has that law changed in recent years?
3. What are the auditor’s possible defenses against lawsuits filed under the Securities Exchange Act of 1934?