Which Statement Is Correct Concerning an Auditor's Statutory Legal Liability

question 17

Multiple Choice

Which statement is correct concerning an auditor's statutory legal liability?

• A)The Securities Act of 1933 broadened the auditor's common law liability and the Securities Exchange Act of 1934 narrowed it.
• B)The auditor has a greater burden of defense under the Securities Act of 1933 than under the Securities Exchange Act of 1934.
• C)Criminal liability only arises under state law.
• D)Statutory liability usually modifies the auditor's liability to the client.

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Definitions:

Poll Tax

A tax levied as a fixed sum on every liable individual, historically used as a means of voter suppression by requiring payment as a precondition for voting.

Taft-Hartley Act

A 1947 federal law in the United States that restricted the activities and power of labor unions, also known as the Labor Management Relations Act.

Wagner Act

A 1935 United States law officially known as the National Labor Relations Act, which guaranteed workers the right to form unions and bargain collectively.

Right-to-Work Laws

Right-to-Work Laws are statutes in some U.S. states that prohibit agreements between labor unions and employers that make membership or payment of union dues or fees a condition of employment, either before or after hiring.