Question 15 of 40

• Under the Securities Act of 1933, accountants who assist in the preparation of the registration statement are civilly liable if the registration statement:
• A.Contains untrue statements of material fact
• B.Omits material facts required by statute or regulation
• C.Omits information that if not given makes the facts stated misleading
• D.All of the above

Question 16 of 40

• Rule 10b-5 of the Securities Exchange Act of 1934 makes it unlawful for a CPA to engage in each of the following activities except:
• A.Employ any device, scheme, or artifice to defraud
• B.Omit a material fact necessary for the financial statements to present fairly financial position, results of operations, and cash flows
• C.Engage in any act, practice, or course of business to commit fraud or deceit in connection with the purchase or sale of a security
• D.Make an untrue statements of material fact or omit a material fact necessary in order to make the statement made, in the light of the circumstances under which they were made, not misleading