Under Section 11 of the Securities Act of 1933,an Auditor

question 83

True/False

Under Section 11 of the Securities Act of 1933,an auditor may escape liability by proving he/she had no reason to believe and did not believe that there were any misstatements or omissions of material fact in the financial statements he/she audited.

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Definitions:

Possession

The act or state of owning, controlling, or having an item or property in one's physical custody.

Exclusive Use

A clause in a lease or agreement granting one party the sole right to use a property, asset, or service in a specified way.

Rent Escalation Clause

In a lease, a clause that permits the landlord to increase the rent in association with increases in costs of living, property taxes, or the tenant’s commercial business.

Long-Term Leases

Lease agreements that extend for a long period, often exceeding a year, typically used for real estate and heavy equipment.