Auditors Have High Exposure to Liability Under the Securities Act

question 65

Short Answer

Auditors have high exposure to liability under the Securities Act of 1933,section 11,primarily because the ______________________________________ has been placed on auditors.

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Definitions:

Physical Injury

Bodily harm or damage that a person suffers due to an accident, violence, or other incident.

Proximate Cause

The primary reason or event that directly leads to an injury or damage, and without which the injury or damage would not have occurred.

Zone Of Danger

A legal doctrine that outlines the area within which a person can recover damages if they were put at risk of physical harm by someone else's negligence.

Contributory Negligence

A legal doctrine that can reduce the plaintiff's damages if they are found to have contributed to their own harm, even partially.