The Same Three Defenses Available to Auditors in Common Lawsuits

question 76

True/False

The same three defenses available to auditors in common lawsuits by third parties-nonnegligent performance, lack of duty, and absence of causal connection-are also available for suits under the Securities Exchange Act of 1934.

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Definitions:

Explains

Provides information or details about something to make it understandable.

Social Cognitive Theory

A theory of learning and social behavior which proposes that new behaviors can be acquired by observing and imitating others.

Rewards

Benefits, often in the form of goods, services, or recognition, given to an individual as compensation or encouragement for their behavior or performance.

Modeling

The process of learning behaviors, attitudes, or emotional reactions through observing others.