An Accountant Is Liable for an Omission in a Registration

question 26

True/False

An accountant is liable for an omission in a registration statement to a purchaser of securities whether or not the omission has a causal connection to the purchaser's loss.​

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Definitions:

Method of Difference

A scientific research method used to identify the cause-effect relationship between variables by changing one variable at a time while keeping others constant.

Causal Factor

An element or condition that brings about or contributes to producing a particular outcome or effect.

Method of Concomitant Variations

A principle in scientific and philosophic reasoning that suggests a causal relationship between two variables if they vary together consistently.

Method of Concomitant Variations

A scientific method where one observes the changes in one variable alongside the changes in another, determining correlation.