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

question 66

Multiple Choice

Under Section 11 of the Securities Act of 1933,an auditor who issues an opinion regarding financial statements of a company making a public distribution of securities can be held liable for errors in the expertised portions of the:

• A)registration statement.
• B)annual 10-K report.
• C)8-K current report.
• D)proxy statements.

---

Definitions:

Recognition

The cognitive process of identifying information that has been previously learned or experienced.

Primacy Effect

The tendency to remember items at the beginning of a list better than those in the middle or at the end.

Emotional Impact

The intense effect an event, experience, or information can have on a person’s feelings or emotions.

Working Memory

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