To Hold Auditors Liable Under the Securities Act of 1933,third

question 9

Multiple Choice

To hold auditors liable under the Securities Act of 1933,third parties have to show

• A)the auditor was negligent in performing the audit
• B)the audited financial statements contained a material misrepresentation or omission
• C)the auditor was fraudulent in performing the audit
• D)the auditor attempted to deceive users of the financial statements

---

Definitions:

Interest

A charge for borrowed money, generally a percentage of the amount borrowed, paid by the borrower to the lender over a set period.

Borrower's Payment

The amount of money a borrower is required to pay back to a lender, often on a regular schedule, including both principal and interest.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to assess investment opportunities.

Number of Periods

A figure representing the count of time intervals, such as months or years, in various financial calculations.