Friday, March 07, 2008


Which of the following circumstances is a defense to an accountant's liability under Section 11 of the Securities Act of 1933 for misstatements and omissions of material facts contained in a registration statement?

a. The absence of scienter on the part of the accountant.
b. The absence of privity between purchasers and the accountant.
c. Due diligence on the part of the accountant.
d. Nonreliance by purchasers on the misstatements.

Correct Ans - C

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