Which of the Following Statements About the Securities Act of 1933

question 3

Multiple Choice

Which of the following statements about the Securities Act of 1933 is not true?

• A) A third party that purchased securities described in the registration statement may sue the auditor for material misrepresentations or omissions in the audited financial statements.
• B) A third-party user does not have the burden of proof that he/she relied on the financial statements.
• C) A third-party user has the burden of proof that the auditor was either negligent or fraudulent in doing the audit.
• D) A third-party user does not have the burden of proof that the loss was caused by the misleading statements.

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Definitions:

Oxidation

Oxidation is a chemical reaction in which a substance loses electrons, often resulting in rust in metals or changes in rock minerals due to exposure to oxygen and water.

Iron-bearing Minerals

Minerals that contain iron as a significant component, often influencing the rock's color and magnetic properties.

Rounded Pebbles

Small, smooth rocks that have been eroded and smoothed over time by water or other natural forces.

Shells

Shells are hard, protective outer layers created by animals, particularly mollusks such as snails, oysters, and clams, as a form of protection or body support.