Under the Liability Provisions of Section 11 of the Securities

question 17

Multiple Choice

Under the liability provisions of section 11 of the Securities Act of 1933,auditors may be liable to any purchaser of a security for certifying materially misstated financial statements that are included in the registration statement.Under section 11,auditors usually will not be liable to the purchaser

• A) if auditors can show contributory negligence on the part of the purchaser.
• B) if auditors can demonstrate due diligence.
• C) unless the purchaser can prove privity with auditors.
• D) unless the purchaser can prove scienter on the part of auditors.

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Definitions:

Culture And Gender

The way cultural norms and values influence the roles, behaviors, and expectations associated with gender identities.

Coping With Stress

The use of adaptive strategies to manage and reduce stress and its effects on mental and physical health.

Cataclysmic Events

Large-scale and often sudden events causing great damage or suffering, such as natural disasters or wars.

Intentional Acts

Deliberate actions taken by individuals, often with a specific purpose or outcome in mind.