Question
If a plaintiff purchased securities and initiates a civil liability suit against a CPA, what must be proven under the 1933 and 1934 Securities Acts
If a plaintiff purchased securities and initiates a civil liability suit against a CPA, what must be proven under the 1933 and 1934 Securities Acts for the plaintiff to prevail? Place yes or no in the space provided for each of the following.
| Section 11 | 10b-5 | |
| 1933 Act | 1934 Act | |
| 1. material misstatement in the financial Statements | _______ | _______ |
| 2. a monetary loss occurred | _______ | _______ |
| 3. lack of due diligence by the CPA | _______ | _______ |
| 4. privity with the CPA | _______ | _______ |
| 5. reliance on the financial statements | _______ | _______ |
| 6. the CPA had scienter | _______ | _______ |
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