How does the securities act of 1933 which imposes civil, Ask an Expert

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How does the securities act of 1933, which imposes civil liability on auditors for misrepresentations or ommisions of materials facts in a registation statement, expand auditors liabiltiy to purchusers of securitities beyond that of common law:

A) purchasers only have to prove loss cuased by reliance on audited financial statements

B) privity with purchasers is not a necessary element of proof

C) purchasers have to prove either fraud or gross negligence as a basis for recovery

D) auditors are held to a standard of care desribed as "professional skeptisim"

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M990714

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