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:

Observational Learning

Learning that occurs through observing the behavior of others and the outcomes of those behaviors.

Social Cognitive Theory

A theory of learning and social behavior which proposes that new behaviors can be acquired by observing and imitating others.

Traits

Characteristic features or qualities distinguishing a person or thing, often inherited in the context of genetics.

Fixations

In psychoanalytic theory, a persistent focus of the id’s pleasure-seeking energies at an earlier stage of psychosexual development.