Under the Liability Provisions of Section 11 of the Securities

question 6

Multiple Choice

Under the liability provisions of section 11 of the Securities Act of 1933,auditors may be liable to any purchaser of securities for certifying materially misstated financial statements that are included in the registration statement.Under section 11,which of the following must be proven by a purchaser of the security?

• A)Reliance on financial statements: Yes; Fraud by auditors: Yes
• B)Reliance on financial statements: Yes; Fraud by auditors: No
• C)Reliance on financial statements: No; Fraud by auditors: Yes
• D)Reliance on financial statements: No; Fraud by auditors: No

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Definitions:

Integrationist Approach

An approach that combines elements from different theories or disciplines to create a more comprehensive perspective on a given issue.

Psychological

Pertaining to the mind, mental processes, and behavior, often in the context of health and emotional wellbeing.

Social Vulnerabilities

The inability of people, organizations, and societies to withstand adverse impacts from multiple stressors to which they are exposed.

File Drawer Effect

A bias in scientific research that results from the tendency to publish only positive or significant findings, while studies with negative or inconclusive results are left unpublished.