Accountants Liability

Question 0

Alternative nemonic for MILE

Answer 0

CAMPS
Casual Relationship (behavior accountant was proximate harm to plantiff)
Absence of due care
Material misstatement
Privity or Equivalent
Suffered Loss

Question 1

Common law liability, Plaintiff must prove…

Answer 1

MILE, Material Misstatement, Info was the proximate cause of the harm, Loss, Error

Question 2

To win a case on Fraud must prove what?

Answer 2

Reliance, Intent to Deceive, Material Misstatement, Suffered Loss

Question 3

Forseen party

Answer 3

Member of a limited class that the accountant knew would be relying on the financial statements. Accountant liable for negligence

Question 4

Securities Act of 1933- Section 11. What elements must be proven by the plantiff:

Answer 4

Suffered loss and there was a material misstatement

Question 5

Time to file suit under Section 11 of Securities Act of 1933

Answer 5

1 year from discovery of 3 years from offering date