Required information

Skip to question

$[$The following information applies to the questions displayed below.$]$

Assume that in a particular audit the CPAs were negligent but not grossly negligent. Indicate whether they would be $$liable$$ or $$not liable$$ for the following loss proximately caused by their negligence and determine that liability under the various theories discussed and followed by different states:

d$.$ Losses to stockholders purchasing shares at an initial public offering; suit brought under the Securities Act of $1933.$

Multiple Choice

Liable

Not liable