Which of the Following Statements Is True of Misstatements or Omissions

question 1

Multiple Choice

Which of the following statements is true of misstatements or omissions of material facts in the information furnished by accountants for registration statements?

• A) An accountant is not liable to a purchaser of securities issued pursuant to a defective registration statement.
• B) An accountant's duty is to have a reasonable belief in the accuracy of the figures at the time the registration statement becomes effective.
• C) A purchaser can recover even if the accountant can demonstrate that the purchaser was aware of the misstatements or omissions in the registration statement before buying the securities.
• D) A purchaser cannot recover if he has not read the registration statement containing the material misstatements or omissions.