Under Section 10 of the 1934 Securities Exchange Act Auditors

question 11

Multiple Choice

Under Section 10 of the 1934 Securities Exchange Act auditors are liable to security purchasers for:

• A) Lack of due diligence.
• B) Existence of scienter.
• C) Ordinary negligence.
• D) Auditors have no liability to security purchasers under this act.

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Definitions:

Organization

A systematic arrangement of people and resources working together to achieve specific goals.

Collection of People

An assembly or group of individuals brought together for a common purpose or function.

Organizational Strength

The unique capabilities and resources that give an organization a competitive advantage or make it effective in achieving its goals.

Performance Advantage

A superior ability to perform a task or achieve goals compared to competitors or standards.