Which is the true statement concerning an auditor's statutory legal liability?

(1) The Securities Act of 1933 broadened the auditor's liability relative to common law and the Securities Exchange Act of 1934 narrowed it.

(2) Criminal liability only arises under state law.

(3) The auditor may limit exposure to liability by destroying documents that might suggest an improper act.

(4) The auditor has a greater burden of defense under the Securities Act of 1933 than the Securities Exchange Act of 1934.

Answer rating: 100% (QA)

Answer The auditor has a greater burden of defense under the Securi... View the full answer