Under the Liability Provisions of Section 11 of the Securities

question 12

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:

Unconscious

A part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Dreams

Sequences of thoughts, images, and sensations occurring in a person's mind during sleep, often reflecting unconscious desires or concerns.

Sleep Apnea

A serious sleep disorder that occurs when a person's breathing is repeatedly interrupted during sleep.

Breathing

The process of inhaling and exhaling air to facilitate gas exchange within the body, primarily oxygen intake and carbon dioxide expulsion.