An Accounting Firm Negligently Prepares an Audit of a Company

Multiple Choice

An accounting firm negligently prepares an audit of a company. The audit is intended to help the shareholders in the work of supervising management. Some investors review the audit and, in reliance on the audit, purchase shares in the company. If the investors lose a substantial amount of money and they sue the accounting firm, the firm would be liable for

A) breach of fiduciary duty.
B) breach of contract.
C) would not be liable.
D) negligent misrepresentation.
E) the tort of libel.