When Financial Statements Are Determined to Be False or Misleading

question 5

Multiple Choice

When financial statements are determined to be false or misleading, the auditor's best defense against a plaintiff bringing suit under the 1933 Securities Act would be:

• A) lack of intent.
• B) lack of privity.
• C) contributory negligence.
• D) no contest.
• E) due diligence.

---

Definitions:

Monogamous Relationships

Romantic or sexual relationships that are exclusively between two individuals at a time.

Sex Lives

The aspects of an individual's or couple's sexual activities, preferences, and relationships.

Farsightedness

A common vision condition, also known as hyperopia, where distant objects may be seen more clearly than objects that are near.

Nearsightedness

A common vision condition, also known as myopia, where close objects appear clearly, but distant ones do not, due to the shape of the eye.