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Part I: Explain the legal basis for a cause of action against an auditor. What are the defenses available to the auditor to rebut such charges.
Part II: What are the legal requirements for a third party to sue an auditor under Section 10 and Rule 10b-5 of the Securities Exchange Act of 1934?
How do these requirements relate to the Hochfelder case? (YOU CAN SEE IT IN THE ATTACHED PPT SLIDE 32)
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