Under Section 11 of the Securities Act of 1933 and Section 10(b), Rule 10b-5, of the Securities
Question:
The plaintiff security purchaser must allege or prove:
1. Material misstatements were included in a filed document.
2. A monetary loss occurred.
3. Lack of due diligence by the CPA.
4. Privity with the CPA.
5. Reliance on the financial statements.
6. The CPA had scienter (knowledge and intent to deceive).
Required
For each of the items 1 through 6 listed above, indicate whether the statement must be proven under
a. Section 11 of the Securities Act of 1933 only.
b. Section 10(b) of the Securities Exchange Act of 1934 only.
c. Both Section 11 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934.
d. Neither Section 11 of the Securities Act of 1933 nor Section 10(b) of the Securities Exchange Act of 1934.*
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Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
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