5. An accountant may raise the following defenses to Section 11 liability: 1) the statements contained Select omission(s); 2) the misstatements or omissions were not of select facts; 3) the misstatements or omissions Select the plaintiff Select of the misstatements or omissions when the plaintiff bought the securities misstatement(s) or cause the plaintiff's loss; or 4) 6. The main difference between Section 11 liability and Section 12 liability is that: a. Section 11 relates to registration statements and Section 12 relates to oral statements or written prospectuses O b. Section 11 deals with misstatements or omissions of material facts and Section 12 relates to any error in a registration statement C. Section 11 imposes criminal sanctions and Section 12 imposes civil sanctions 7. Under Section 18 of the Securities Exchange Act of 1934, a plaintiff must show that an accountant made a false or misleading statement and that the statement affected the Select of the security or that the plaintiff was not aware of the inaccuracy of the statement and Select the statement when making the purchase or sale of the security. 8. The Securities Exchange Act of 1934 relieves an accountant from liability if the accountant: a. acted in good faith b. does not have a history of fraud c. was grossly negligent d. also was a victim of the statement 9. SEC Rule 10b-5 makes it unlawful for any person, in relation to the purchase or sale of any security, to employ any device, scheme, or strategy to to make any untrue statement of a fact or omit to state a fact necessary to make the statements made not misleading, or to engage in any act, practice, or course of business that operates, or would operate, as a or deceit on any person Fill in the blanks with words that would best complete the passage. ordinary ordinary material material problem fraud trick defraud manipulate 12. According to the Private Securities Litigation Reform Act of 1995 (PSLRA), an auditor must use procedures in an audit to detect any illegal acts of the company being audited. If something illegal is detected, the auditor must it to the company's board of directors, audit committee, or the SEC. After the PSLRA was passed, parties are subject to liability, rather than joint and several liability. However, if an accountant knowingly aids and abets a primary violator, the SEC can seek o r monetary . Fill in the blanks with words that would best complete the passage. extraordinary adequate proportional present an injunction absolute prison time reimbursement damages ordinary disclose code, and Select laws related to certifying 13. Accountants may be found criminally liable for violations of the Select laws, the select false reports, altering account books, or using false financial statements to obtain credit. 14. Making false statements in a tax return or willfully aiding or assisting others to prepare a false tax return is: a. common b. a misdemeanor c. a felony d. a violation of GAAS