Under the Liability Provisions of Section 11 of the Securities

question 59

Multiple Choice

Under the liability provisions of Section 11 of the Securities Act of 1933,an auditor may help to establish the defense of due diligence if
I.The auditor performed an additional review of the audited statements to ensure that the statements were accurate as of the effective date of a registration statement.
II.The auditor complied with GAAS.

• A) I only.
• B) II only.
• C) Both I and II.
• D) Neither I nor II.

Evaluate the principles of consideration and how they apply to contract modifications.

Distinguish between valid, void, and voidable contracts.

Apply the doctrine of promissory estoppel in contractual disputes.

Recognize and differentiate between formal and informal contracts.

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Definitions:

Austria

A landlocked country in Central Europe, known for its rich cultural heritage, historical landmarks, and contributions to art, music, and science.

Bankruptcy Proceedings

The legal process through which individuals or businesses that are unable to pay their debts undergo a court-managed distribution or elimination of those debts.

Tax Evasion

The illegal act of not paying taxes owed, thereby hiding income or information from the tax authorities.

Partnership Interest

An ownership share held by a partner in a partnership, representing a portion of the partnership's assets and profits.