Which of the Following Defenses May Be Raised by an Accountant

question 34

Multiple Choice

Which of the following defenses may be raised by an accountant under Section 11 of the 1933 Securities Act?

• A) Privity and due diligence
• B) Privity,but not due diligence
• C) Due diligence,but not privity
• D) Neither privity nor due diligence

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Definitions:

Tested

The process of evaluating skills, performance, reliability, or quality by administering a series of questions or activities under controlled conditions.

Equivalent Samples

Groups in a study or experiment that are made as similar as possible to ensure that results are due to the variable being tested rather than pre-existing differences among participants.

Cross-sectional

A research design that analyzes data from a population, or a representative subset, at a specific point in time.

Longitudinal

Relating to, involving, or measuring changes over time, especially in regards to the study or analysis of development or progression.