Auditors legal responsibilities differ significantly under the Securities Exchange Act of 1934 and the Securities Act of
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Auditors are faced with much more litigation risk when they audit financial statements included in a registration statement filed under the 1933 Act compared to when they audit financial statements included in a registration statement filed under the 1934 Act When filing suit against an auditor under the 1933 Act a plaintiff must establish only two general elements of proof to make a prima facie case The plaintiff must prove that he or she has suffered damages and that the financial statements in ...View the full answer
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