Under Section 10 of the 1934 Securities Exchange Act Auditors

question 36

Multiple Choice

Under Section 10 of the 1934 Securities Exchange Act auditors are liable to security purchasers for:

• A)Lack of due diligence.
• B)Intent to deceive or defraud.
• C)Ordinary negligence.
• D)Auditors have no liability to security purchasers under this act.

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Definitions:

False Positives

Occurrences where a test incorrectly indicates the presence of a condition or attribute.

Eyewitness Testimony

Evidence provided by people who witnessed an event or crime, detailing what they observed.

Auditory Memories

Memories that are associated with hearing, including the recall of sounds, music, words, and other auditory stimuli.

Habituate

The process by which a person or animal becomes accustomed to a stimulus, leading to a decrease in response over time.