Which of the following is false regarding common and federal securities laws?

-The securities act of 1933 deals only with the reporting requirements for companies issuing new securities.

-Rule 10-5b of the securities exchange act of 1934 is also known as the antifraud provision.

-Ultramares doctrine states that ordinary negligence is insufficient for liability to third parties because of the lack of privity of contracts.

-A scienter is a specialist used in Rule 10-5b investigations.

2. Which of the following is false with regards to audit responsibility?

- The auditor's responsibility for illegal acts is the same as for errors and fraud.

-Auditing standards make no distiniction between error or fraud, in either case, the auditor must obtain reasonable assurance about whether the financial statements are free of material misstatement.

-The auditor of a public company is required to certify the annual financial statements.

-Reasonable assurance is a high, but not absolute, level of asssurance.

3.Which of the following is true about assertions?

-Classification and understandability addresses whether the assets are the rights of the entity and whether liabilities are the obligations of the entity.

- The accuracy assertion addresses whether transactions have been recorded at correct amounts.

- The existence assertion concerns whether recorded transactions included in the financial statements actually occurred.

- The occurence assertion addresses whether all transactions that should be included in the financial statements are in fact inlcuded.

4. Auditors audit objectives follow and are closely related to managment.

True or False

5. The auditors determine which disclosures must be presented in the finanical state.

true or false