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One of the Greatest Sources of Liability for Auditors Under

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Essay

One of the greatest sources of liability for auditors under the 1934 Act is Section 10(b)and the related Rule 10b-5, which states that it is unlawful for any person to defraud, make any untrue statement of a material fact, or engage in any act in connection with the purchase or sale of a security. Once a plaintiff has established that he or she can sue under Rule 10b-5, there are four elements that must be proven. List the four elements.


Definitions:

Zygote

The initial cell formed when a new organism is produced by the merging of an egg and sperm cell during fertilization.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Heterozygous

A genetic condition where an individual has two different alleles of a gene.

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