Question
A CPA issued an unqualified opinion on the financial statements of a company that sold common stock in a public offering subject to the Securities
A CPA issued an unqualified opinion on the financial statements of a company that sold common stock in a public offering subject to the Securities Act of 1933. Based on a misstatement in the financial statements, the CPA is being sued by an investor who purchased shares of this public offering. Which of the following represents a viable defense?
| The investor has not proven CPA negligence. | ||
| The CPA detected the misstatement after the audit report date. | ||
| The audit work was adequate to support the CPA's opinion. | ||
| The investor did not rely upon the financial statement. |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
