Question: Nora, an accountant, prepares a financial statement as part of a registration statement that Omega, Inc., files with the Securities and Exchange Commission before making

Nora, an accountant, prepares a financial statement as part of a registration statement that Omega, Inc., files with the Securities and Exchange Commission before making a public offering of securities. The statement contains a misstatement of material fact that is not attributable to Nora’s fraud or negligence. Pat relies on the misstatement, buys some of the securities, and suffers a loss. Can Nora be held liable to Pat? Explain.

Step by Step Solution

★★★★★

3.46 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

No In the circumstances described in the problem the accountant will not be hel... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

311-L-B-L-B-R (269).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

In my opinion, we ought to stop making our own drums and accept that outside suppliers offer, said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. At a price of $18 per drum, we...

The Securities and Exchange Commission (SEC) has encouraged managements of public companies to disclose more information in the shareholders annual report. As a consequence, a significant amount of...

The U.S. Securities and Exchange Commission (SEC) roadmap issued in 2008 may eventually move U.S. issuers to report under International Financial Reporting Standards (IFRS). Consider the following...

On December 12, 2002, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against four executives of Safety-Kleen Corp., a leading provider of industrial waste collection and disposal...

Nora, an accountant, prepares a financial statement as part of a registration statement that Omega, Inc., files with the Securities and Exchange Commission before making a public offering of...

1. Dave, an accountant, prepares a financial statement for Excel Company, a client, knowing that Excel will use the statement to obtain a loan from First National Bank. Dave makes negligent omissions...

Oliver, an accountant, compiles a financial statement for inclusion in a registration statement submitted by Zeta, Inc., to the Securities and Exchange Commission in preparation for a public...

commentthecaseofKeriChisolm,ofCostaMesa,California.DescribethereasonsforherdisciplineandhowitreflectsonhercompetenceasaCPA. pdf page 19 UPDATE SPRING/SUMMER 2016 ISSUE NO. 81 PRESIDENT'S MESSAGE One...

The Wilson Corporation.* * This case was prepared by Kyle V. Maryanski, PricewaterhouseCoopers. Company Background Wilson Corporation (hereinafter referred to as the Company) is a Delaware...

"China's central bank Monday conducted a total of 10 billion yuan (about $1.4 billion) of reverse repos to maintain liquidity in the banking system. The interest rate for the seven-day reverse repos...

An investment is said to be liquid if the investment: A) has large day to day fluctuations in price. B) has a large bid-ask spread. C) can easily be converted into cash. D) is traded on a stock...

Classify each of the following expenditures paid in 2 0 2 1 as a deduction "For AGI", "From AGI", or "Not deductible". Note: Assume the taxpayer itemizes and ignore any possible limitations . a ....

16. Steam at 100C passing through a radiator condenses to water and releases heat. If 1500 kcai of heat are released, how much more energy is required to vaporize the water, at 100C, to steam?

Colton Enterprises experienced the following events for Year 1, the first year of operation: Acquired $53,000 cash from the issue of common stock. Paid $13,800 cash in advance for rent. The payment...

Alfred, owner of Hi-Tech Fiberglass Fabricators, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis: Budgeted manufacturing...

You are given the following information regarding two European options on the same dividend-paying stock in the Black-Scholes framework: (i) The stock is currently priced at $50. (ii) The cost of...

What is the federal funds rate? What are the factors that would shift the demand curve for reserves?

Was the specific exchange rate that the bank used important to the disposition of this case? Explain.

Should the court have considered whether the bank had a corrupt intent to deprive its customer of funds? Why or why not?

Who is the principal, and who is the agent in this scenario? By which method was an agency relationship formed between Scott and Blatt? James Blatt hired Marilyn Scott to sell insurance for the...

Income statement. Construct the Barron Pizza, Inc. income statement for the year ending 2015 with the following information (the dollar amounts are in thousands of dollars): Shares outstanding:...

Assume that X corp needs 100,000 New Zealand dollars 180 days from now. If the probability distribution is Possible Value of New Zealand Dollars in 180 days Probability $0.40 5% $0.45 10% $0.48 30%...

Q. Which of the following statements are false: I. Central banks may intervene into FX markets to add up its official foreign currency reserves; II. If the speculator believes that the currency is...