Which of the Following Is False Regarding the Private Securities

question 57

Multiple Choice

Which of the following is false regarding the Private Securities Litigation Reform Act?

• A)In the event of a willful violation of the act,the SEC can seek an injunction against the accountant.
• B)Under the act,an accountant's silence when the accountant thinks he or she might have discovered fraud is enough to constitute aiding and abetting.
• C)The act sets forth a specific set of actions and guidelines an accountant must follow after identifying a potentially illegal activity when conducting an audit.
• D)The act states that accountants are liable for the portion of the damages for which they are responsible.
• E)The act makes no reference to notifying the SEC of wrongdoing although it does reference notifying the applicable company's board of directors.

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