Under the theory of joint and liability, each defendant may be 100% liable. 2. In a legal proceeding, a CPA may be completely exonerated from guilt, if he or she 3. In the Ultramares v. Touche & Co. lawsuit, an auditor will rely on the audited financial statements. 4. Under the Securities Act of 1933, an auditor is only liable to 5. Under the Securities & Exchange Act of 1934, an auditor is not liable if 6. Under RICO an auditor may become liable. who shareholders. 7. In addition to audited financial statements, a CPA may be liable for other types of financial statements including. and 8. When there is a dispute as to the nature of the services to be rendered by the CPA to the client, is an essential document. the 9. Bernard Madoff was convicted of operating a scheme. 10. In order to raise capital, an initial public offering (IPO), a company must first file a