Which of the Following Is False Regarding the Private Securities

question 28

Multiple Choice

Which of the following is false regarding the Private Securities Litigation Reform Act?

• A) The act sets forth a specific set of actions and guidelines an accountant must follow after identifying a potentially illegal activity when conducting an audit.
• B) The act makes no reference to notifying the SEC of wrongdoing although it does reference notifying the applicable company's board of directors.
• C) The act states that accountants are liable for the portion of the damages for which they are responsible.
• D) In the event of a willful violation of the act, the SEC can seek an injunction against the accountant.
• E) Under the act, an accountant's silence when the accountant thinks he or she might have discovered fraud is enough to constitute aiding and abetting.

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