An Accountant Is Not Liable for an Omission in a Registration

question 38

True/False

An accountant is not liable for an omission in a registration statement to a purchaser of securities if the omission had no causal connection to the purchaser's loss.

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Definitions:

Intended Beneficiary

A third party for whom a contract is created to benefit, giving them certain rights to enforce the contract.

Contract

A legally enforceable agreement between two or more parties that creates mutual obligations enforceable by law.

Rights

Entitlements or permissions granted to individuals or groups by legal systems, societal norms, or moral principles, often protected by law.

Vest

To mature, as in the maturation of rights that allow a party to act legally on the rights.