Meri,an Accountant,includes a False Statement in a Report for Novelty

question 33

Multiple Choice

Meri,an accountant,includes a false statement in a report for Novelty Paper Products,Inc.(NPPI) that is filed with the Securities and Exchange Com?mission.When Otho buys stock in NPPI and loses money on the investment,he files a suit against Meri,alleging fraud under the 1934 Securities Exchange Act.To avoid liability,Meri can show that she

• A)intended to defraud NPPI,not Otho.
• B)intended to profit on stock trades generally,not only with Otho.
• C)is an otherwise competent accountant.
• D)was not aware her statement was false.

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Definitions:

Family Educational Rights and Privacy Act (FERPA)

The Family Educational Rights and Privacy Act (FERPA) is a federal law that protects the privacy of student education records.

Confidential

Pertains to information that is meant to be kept secret or private, typically to protect sensitive data or personal privacy.

Nonverbal Communication

The process of conveying a message without the use of words, which can include gestures, facial expressions, and body language.

Time Frame

A specific period during which something occurs or is expected to take place.