22. The Securities Act of 1933
22. The Securities Act of 1933
(A) regulates trading in securities.
B) approves and guarantees investments.
C) regulates the initial issuance of securities.
D) regulates the accounting profession.
23. Which of the following statements about the Securities Act of 1933 is not true?
A) The plaintiff must prove damages or an economic loss.
B) The plaintiff must prove they read and relied upon the financial statements.
C) Any purchaser of securities may sue auditors.
D) The plaintiff need not prove that the materially misstated financial statements are the direct cause of the loss.
25. Whenever an auditor issues a qualified opinion, the implication is that the auditor:
A) does not know if the financial statements are presented fairly.
B) does not believe the financial statements are presented fairly.
C) pelieves the financial statements are presented fairly.
D) believes the financial statements are presented fairly "except for" a specific aspect of them.
Homework Answers
Ans. 22 : Correct answer is A that is regulates trading in securities.
Explanation : Securities Act 1933, is an act to provide full and fair disclosure of the character of securities sold in interstate and foreign commerce to prevent fraud in sale thereof.
Ans. 23 : Correct answer is D.
Explanation : Plaintiff need to prove that materially misstated financial statements are the direct cause of loss. As per section 11, any person who acquired a security containing a misstatement or omission can take a stand.
Ans. 25 : Correct answer is D.
Explanation : Qualified opinion is expressed to the financial statements that are not prepared in all material respect while those misstatement are not pervasive.
Under Section 11 of the Securities Act of 1933, in order to establish the liability of...
Under Section 11 of the Securities Act of 1933, in order to establish the liability of an auditor who prepared a defective registration statement, a plaintiff must prove that: a. he/she purchased securities issued pursuant to the defective registration statement. b. the auditor acted with scienter in preparing the registration statement. c. the auditor was negligent in preparing the registration statement. d. he/she was in privity of contract with the auditor.
Item (d) relates to what a plaintiff who purchased securities must prove in a civil liability...
Item (d) relates to what a plaintiff who purchased securities must prove in a civil liability suit against a CPA. d. The plaintiff security purchaser must prove privity with the CPA. Multiple Choice A)Only applies to Section 10(b) of the Securities Exchange Act. B)Only applies to Section 11 of the 1933 Securities Act. C)Applies to neither of the acts.
Select the necessary words from the list of possibilities to complete the following statements.
Select the necessary words from the list of possibilities to complete the following statements.Statements1. Under the Securities Act of 1933, initial purchasers of securities may sue the auditors for misleading audited financial statements and need not prove that they relied on the financial statements. The burden of proof is on the auditors to prove that they were in the performance of their work.2. When CPAs are associated with a possibility exists that the client may misinterpret the extent of the...
33 Read the overview below and complete the activities that follow. The 1933 and 1934 acts...
33
Read the overview below and complete the activities that follow. The 1933 and 1934 acts are different in the way they protect investors and the burden of proof required. The 1933 Act pertains to those acquiring an initial distribution of a security, the 1934 Act is for anyone buying or selling the security CONCEPT REVIEW: Auditors have different liability responsibility under the different acts. For example, under the 1933 Act, the third party does not need to prove reliance...
Hello, 1. If an auditor is associated with an S-1 filed under the Securities Act of...
Hello, 1. If an auditor is associated with an S-1 filed under the Securities Act of 1933 and a lawsuit arises, what would the plaintiff need to prove? 2. What type of defenses are available to the auditor?
Which element is a required disclosure in the prospectus, according to the Securities Act of 1933?...
Which element is a required disclosure in the prospectus, according to the Securities Act of 1933? 1- Audited financial statements 2- Tax returns 3- Internal control reports 4- Budgets
Select the necessary words from the list of possibilities to complete the following statements. Statements Answer...
Select the necessary words from the list of possibilities to complete the following statements. Statements Answer of financial statements involves the performance of limited investigative procedures that provide a basis for the expression of limited assurance that there are no material departures from generally accepted accounting principles is the written contract summarizing the relationship between the auditors and the client 2. An Under the Securities Act of 1933, initial purchasers of securities may sue the auditors for misleading audited financial...
1. Which of the following is false regarding common and federal securities laws? a. The securities...
1. Which of the following is false regarding common and federal securities laws? a. The securities act of 1933 deals only with the reporting requirements for companies issuing new securities. b. -Rule 10-5b of the securities exchange act of 1934 is also known as the antifraud provision. C. -Ultramares doctrine states that ordinary negligence is insufficient for liability to third parties because of the lack of privity of contracts. d. A scienter is a specialist used in Rule 10-5b investigations....
1. Which of the following is false regarding common and federal securities laws? a. The securities...
1. Which of the following is false regarding common and federal securities laws? a. The securities act of 1933 deals only with the reporting requirements for companies issuing new securities. b. -Rule 10-5b of the securities exchange act of 1934 is also known as the antifraud provision. C. -Ultramares doctrine states that ordinary negligence is insufficient for liability to third parties because of the lack of privity of contracts. d. A scienter is a specialist used in Rule 10-5b investigations....
US, business law 68. The the 1933 Act. document that an issuer of securities provides to...
US, business law
68. The the 1933 Act. document that an issuer of securities provides to each prospective purchaser under a. registration statement b. prospectus c. investment contract d. placement memorandum 69. Assuming Rule 504 of Regulation D otherwise applies, it exempts offerings of up to_ within a period, and there may bepurchasers a. $2 million; six-month; up to 100 b. $500,000; two-year; up to 500 c. $1 million; twelve-month; an unlimited number of d. $100,000; three-month; up to 50...
33
Read the overview below and complete the activities that follow. The 1933 and 1934 acts are different in the way they protect investors and the burden of proof required. The 1933 Act pertains to those acquiring an initial distribution of a security, the 1934 Act is for anyone buying or selling the security CONCEPT REVIEW: Auditors have different liability responsibility under the different acts. For example, under the 1933 Act, the third party does not need to prove reliance...
Select the necessary words from the list of possibilities to complete the following statements. Statements Answer of financial statements involves the performance of limited investigative procedures that provide a basis for the expression of limited assurance that there are no material departures from generally accepted accounting principles is the written contract summarizing the relationship between the auditors and the client 2. An Under the Securities Act of 1933, initial purchasers of securities may sue the auditors for misleading audited financial...
1. Which of the following is false regarding common and federal securities laws? a. The securities act of 1933 deals only with the reporting requirements for companies issuing new securities. b. -Rule 10-5b of the securities exchange act of 1934 is also known as the antifraud provision. C. -Ultramares doctrine states that ordinary negligence is insufficient for liability to third parties because of the lack of privity of contracts. d. A scienter is a specialist used in Rule 10-5b investigations....
1. Which of the following is false regarding common and federal securities laws? a. The securities act of 1933 deals only with the reporting requirements for companies issuing new securities. b. -Rule 10-5b of the securities exchange act of 1934 is also known as the antifraud provision. C. -Ultramares doctrine states that ordinary negligence is insufficient for liability to third parties because of the lack of privity of contracts. d. A scienter is a specialist used in Rule 10-5b investigations....
US, business law
68. The the 1933 Act. document that an issuer of securities provides to each prospective purchaser under a. registration statement b. prospectus c. investment contract d. placement memorandum 69. Assuming Rule 504 of Regulation D otherwise applies, it exempts offerings of up to_ within a period, and there may bepurchasers a. $2 million; six-month; up to 100 b. $500,000; two-year; up to 500 c. $1 million; twelve-month; an unlimited number of d. $100,000; three-month; up to 50...
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