CPA Legal Liab Flashcards by user delete | Brainscape

Q

1933 Act

A

IPO
CPA can be held liable to anyone who can prove:
1. Suffered loss
2. Acquired the stock
3. Material misstatement

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Q

What is CPA liable for?

A

Breach of contract
Tort (negligence, fraud, constructive fraud)
Violation of statute

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Q

Rule 10b-5 of 1934 Act

A

CPA can be held criminally or civially liable for MM with fraud
person harmed must prove (LAM D&E)
1. Loss
2. Acquired stock
3. Material misstatement
  * 4. Deception (Scienter)
  * 5. Reliance

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