Which of the following would be the auditors’ most likely defense in an action broughtunder the Securities Exchange Act of 1934?a. The investor did not have privity with auditors.b. The investor did not suffer a loss based on the materially misstated financial statements.c. The auditors acted in good faith and were not aware of the materially misstated financialstatements.d. The financial statements were not filed with the Securities and Exchange Commission
Which of the following would be the auditors’ most likely defense in an action broughtunder the Securities Exchange Act of 1934?a. The investor did not have privity with auditors.b. The investor did not suffer a loss based on the materially misstated financial statements.c. The auditors acted in good faith and were not aware of the materially misstated financialstatements.d. The financial statements were not filed with the Securities and Exchange Commission
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter15: Audit Reports For Financial Statement Audits
Section: Chapter Questions
Problem 23CYBK
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Question
Which of the following would be the auditors’ most likely defense in an action brought
under the Securities Exchange Act of 1934?
a. The investor did not have privity with auditors.
b. The investor did not suffer a loss based on the materially misstated financial statements.
c. The auditors acted in good faith and were not aware of the materially misstated financial
statements.
d. The financial statements were not filed with the Securities and Exchange Commission
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