Under Section 11 of the Securities Act of 1933, Which

question 54

Multiple Choice

Under Section 11 of the Securities Act of 1933, which of the following standards may a CPA use as a defense?

• A)The auditor exercised due diligence in following PCAOB auditing standards and generally accepted fraud detection standards.
• B)The auditor exercised due diligence in following PCAOB auditing standards but not generally accepted fraud detection standards.
• C)The auditor exercised due diligence in following PCAOB fraud detection standards but not generally accepted auditing standards.
• D)The auditor exercised due diligence in following neither PCAOB auditing standards nor generally accepted fraud detection standards.

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Definitions:

Tension

A mental or emotional strain caused by the conflict between opposing forces, thoughts, or feelings.

Homeostatic Approach

A concept in psychology that refers to the process by which organisms maintain a stable internal environment despite external changes, often applied to emotional regulation.

Balance and Equilibrium

The state of psychological stability achieved when tensions or conflicts are managed and personal needs are adequately met.

American Psychoanalytic Association

A professional organization dedicated to the study and practice of psychoanalysis in the United States.