Which of the Following Statements About the Securities Act of 1933

question 3

Multiple Choice

Which of the following statements about the Securities Act of 1933 is not true?

• A) A third party that purchased securities described in the registration statement may sue the auditor for material misrepresentations or omissions in the audited financial statements.
• B) A third-party user does not have the burden of proof that he/she relied on the financial statements.
• C) A third-party user has the burden of proof that the auditor was either negligent or fraudulent in doing the audit.
• D) A third-party user does not have the burden of proof that the loss was caused by the misleading statements.

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Definitions:

Biological Sexism

Discrimination or prejudice based on biological differences between males and females.

Sexually Transmitted Infections

Illnesses passed on through sexual activities, originating from viruses, bacteria, or parasites.

Chlamydia

A widespread sexually transmitted disease resulting from the bacterium Chlamydia trachomatis, frequently showing no symptoms yet curable with antibiotics.

Health Problems

Various conditions or diseases that negatively impact an individual's physical or mental well-being.