If the assumptions of regression have been met, errors plotted against the independent variable will typically show patterns

Sun Corp. approved a merger plan with Cord Corp. Factors in approving the merger were the tax returns of Cord prepared by Frank & Co., CPAs. Sun had required Cord to disclose its tax returns and audited financial statements as a condition of the merger. Frank knew of this condition before it prepared returns that contained irregularities that later caused Sun to suffer substantial losses. For Frank to be liable for common law negligence, Sun, at a minimum, must prove that Frank

A. Knew of the irregularities. B. Failed to exercise due care. C. Was grossly negligent. D. Acted with scienter.

_____ are characteristics of entities

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