Winnie, CPA contracted with Conor Corp., a publicly-traded company, to perform an audit of their financial statements.

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Winnie, CPA contracted with Conor Corp., a publicly-traded company, to perform an audit of their financial statements. Subsequently, the stock price declined significantly and it was determined that they performed the audit with ordinary negligence. The stock of Conor Corp. had been outstanding for over ten years. The stockholders sue Winnie for their losses.

a. If they sue under the Securities Act of 1933, will Winnie be found liable? Why or why not?

b. If they sue under the Securities Act of 1934, will Winnie be found liable? Why or why not?

Related Book For answer-question

Principles of Auditing and Other Assurance Services

ISBN: 978-0078025617

19th edition

Authors: Ray Whittington, Kurt Pany

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Posted Date: Feb 15, 2022 06:43 AM

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Winnie, CPA contracted with Conor Corp., a publicly-traded company, to perform an audit of their financial statements.

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a Answer No Winnie shall not be found liable in the given if sued under Securities Act of 1933 ... View the full answer

Principles of Auditing and Other Assurance Services

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