Which of the Following Would Third Parties Not Need to Demonstrate

question 84

Multiple Choice

Which of the following would third parties not need to demonstrate when bringing suit against auditors for losses sustained under the Securities Act of 1933?

• A) Auditors were aware of the materially misstated financial statements.
• B) Third-party purchasers suffered a loss.
• C) The client's financial statements contained a material misstatement.
• D) Purchasers would need to demonstrate all of the above.

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Definitions:

Eurobond

A bond issued in a currency other than the home currency of the country or market in which it is issued, often not subject to the regulations of a single country.

International Bond

A bond issued in a country by a non-domestic entity, often in a currency other than that of the issuer's country.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to determine the relative value of currencies.

Price Adjustment

A change in the purchase price of a good or service in response to market factors or contractual terms.