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.

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Definitions:

Initial Contact

The first interaction or communication between individuals or parties.

Interview Process

A series of steps or stages involved in the selection of a candidate for a position, which may include screening calls, in-person interviews, and tests or assessments.

Skills And Accomplishments

A summary of one's abilities and achievements, often highlighted in resumes or professional profiles.

Fallacies

Errors in reasoning that invalidate the logic of an argument.