(a) Is an auditor liable under Section 10(b) or Rule 10b-5 for overstated earnings resulting from option...

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(a) Is an auditor liable under Section 10(b) or Rule 10b-5 for overstated earnings resulting from option backdating?
(b) Does it matter whether the employees who did the audit in a subsequent year were not aware of the earlier alleged backdating?

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Managers and the Legal Environment Strategies for the 21st Century

ISBN: 978-1111530631

7th edition

Authors: Constance E. Bagley

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Question Posted: Mar 17, 2016 03:57 AM

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(a) Is an auditor liable under Section 10(b) or Rule 10b-5 for overstated earnings resulting from option...

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a The US Court of Appeals for the Ninth Circuit held that the plaintiffs had alleged sufficient facts to show scienter and refused to dismiss the case New Mexico State Investment Council v Ernst Young ...View the full answer

Managers and the Legal Environment Strategies for the 21st Century

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