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 10. Under Section 10(b) and Rule 10b-5. accountants may be held liable to which two of the answer choices? a the government b. sellers of securities c. buyers of securities d. the SEC e. Issuers of securities 11. In order for a plaintiff to recover damages under Section 10(b), he or she must prove that the accountant Select 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 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. code, and Select laws related to certifying 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