which of the following is false regarding legal liability? a. foreseeable users are users the auditor should have reasonably been able to foresee as likely users of the client's financial statements. Be. The SEC has the authority to sanction. C. the sarbanes-oxley ACT requires the Auditors to certify the annual financial statements filed with the SEC. D. Rule 10/5 B of the Securities Act of 1934 is often called the anti-fraud provision.