Which of the Following Would Not Need to Be Demonstrated

question 51

Multiple Choice

Which of the following would not need to be demonstrated by third parties 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:

Too

A word indicating an excessive amount or degree of something.

Two

The numerical value representing a quantity equal to one plus one, often considered in contexts of comparison or difference.

Drafting

The preliminary stage of writing or drawing up documents, plans, designs, or legislation before they are finalized.

Research

the systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.