Accountant Liability

Question 1

Under the Anti-Fraud Provisions of the 1934 Act, plaintiff must prove the following, except:
A. Scienter
B. GAAP/GAAS violation
C. Plaintiff’s reliance
D. Material misrepresentation or omission
E. Suffered financial loss
F. Privity

Answer 1

B. GAAP/GAAS violation

Question 2

The Anti-Fraud Provisions of the 1934 Act applies to a committed wrongful act under the following, except:
A. Act accomplished through the mail
B. Use of interstate commerce
C. Intent to defraud present
D. Act through a national securities exchange

Answer 2

C. Intent to defraud present (Scienter is intent to deceive, not defraud)

Question 3

Under Section 11 of the 1933 Act, plantiff must prove the following:
A. Scienter
B. GAAP/GAAS violation
C. Plaintiff’s reliance
D. Material misrepresentation or omission
E. Suffered financial loss
F. Privity

Answer 3

D. Material misrepresentation or omission

E. Suffered financial loss