Required information Ch04 Auditor's Standard of Liability (LO4-4, LO4-5) Auditor's Standard of Liability Read the overview below and complete the activities that follow. The 1933 and 1934 acts are different in the way they protect investors and the burden of proof required. The 1933 Act pertains to those acquiring an initial distribution of a security; the 1934 Act is for anyone buying or selling the security. CONCEPT REVIEW: Auditors have different liability/responsibility under the different acts. For example, under the 1933 Act, the third party does not need to prove reliance on the financial statements; under the 1934 Act, the third party must prove reliance. There is also a difference relating to which third parties the auditor is liable to. Part 1 - Drag and Drop Roll your cursor over each basic standard of liability and, based on the hint given, choose the correct act. Auditors must prove due diligence. 1933 Act 1934 Act Auditors must prove good faith. Auditors must prove due diligence. Third party must prove existence of scienter. Reset