Which Statement Is Correct Concerning an Auditor's Statutory Legal Liability

question 17

Multiple Choice

Which statement is correct concerning an auditor's statutory legal liability?

• A)The Securities Act of 1933 broadened the auditor's common law liability and the Securities Exchange Act of 1934 narrowed it.
• B)The auditor has a greater burden of defense under the Securities Act of 1933 than under the Securities Exchange Act of 1934.
• C)Criminal liability only arises under state law.
• D)Statutory liability usually modifies the auditor's liability to the client.

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Definitions:

Long-term Memory

The phase of the memory process that is capable of storing information for extended periods of time, ranging from minutes to a lifetime.

Short-term Memory

A cognitive system with a limited capacity that is capable of temporarily holding information available for processing.

Distributed Practice

A learning strategy that involves spreading study sessions and practice over time.

Retrieving Memory

The process of recalling information stored in the brain.