Author Question: Adam claimed that N & A, its accounting firm, negligently prepared an audit. To hold the ... (Read 55 times)

Bernana · **on:** Jun 24, 2018

Adam claimed that N & A, its accounting firm, negligently prepared an audit. To hold the accounting firm liable, which of the following elements must be established?
A) Scienter or guilty knowledge
B) A fiduciary relationship
C) Failure to exercise due care
D) An executed engagement letter

Question 2

To prevail under the 1933 Securities Act, a plaintiff must prove
A) the registration statement contained a material misstatement or omission; and the plaintiff lost money.
B) the registration statement contained a material misstatement or omission; the auditor acted knowingly or recklessly; and the plaintiff lost money.
C) the registration statement contained a material misstatement or omission; the auditor intended to deceive; and the plaintiff lost money.
D) only that the registration statement contained a material misstatement or omission.