The CPA firm of Peterson and Peterson was hired by Hickory Street Corporation to audit its financial statements in connection with its initial public offering in 1998.Since then Peterson and Peterson has been retained to audit the financial statements in connection with the filings required under the Securities Exchange Act of 1934.In 2006,Peterson and Peterson discovered that all the financial statements audited in 2003,2004,and 2005 contained material misstatements.Peterson and Peterson negligently performed all of these audits,but did not know of the misstatements.Which is true about Peterson and Peterson's liability under Section 11 of the Securities Act of 1933 and under Rule 10b-5 of the Securities Exchange of 1934?

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The Answer of The CPA firm of Peterson and Peterson was hired by Hickory Street Corporation to audit its financial statements in connection with its initial public offering in 1998.Since then Peterson and Peterson has been retained to audit the financial statements in connection with the filings required under the Securities Exchange Act of 1934.In 2006,Peterson and Peterson discovered that all the financial statements audited in 2003,2004,and 2005 contained material misstatements.Peterson and Peterson negligently performed all of these audits,but did not know of the misstatements.Which is true about Peterson and Peterson's liability under Section 11 of the Securities Act of 1933 and under Rule 10b-5 of the Securities Exchange of 1934?

The CPA Firm of Peterson and Peterson Was Hired by Hickory