Question
Winnie, CPA contracted with Conor Corp., a publicly-traded company, to perform an audit of their financial statements. Subsequently, the stock price declined significantly and it
Winnie, CPA contracted with Conor Corp., a publicly-traded company, to perform an audit of their financial statements. Subsequently, the stock price declined significantly and it was determined that they performed the audit with ordinary negligence. The stock of Conor Corp. had been outstanding for over ten years. The stockholders sue Winnie for their losses.
a. If they sue under the Securities Act of 1933, will Winnie be found liable? Why or why not?
b. If they sue under the Securities Act of 1934, will Winnie be found liable? Why or why not?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a Answer No Winnie shall not be found liable in the given if sued under Securities Act of 1933 ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Principles of Auditing and Other Assurance Services
Authors: Ray Whittington, Kurt Pany
19th edition
978-0077804770, 78025613, 77804775, 978-0078025617
