Section 18(a) of the 1934 Act:
A) requires that the plaintiff prove reliance.
B) makes an accountant liable for accidental mistakes in the audit.
C) is not triggered by reliance.
D) requires the accountant to prove that he exercised due diligence. Section 18(a) of the 1934 Act requires that the plaintiff prove reliance.Section 18(a) imposes liability on accountants who furnish false or misleading information in any report or document filed with the SEC.While privity is not a defense in a Section 18 action,it is still not widely used because it contains a stringent reliance requirement.The purchaser or seller must have actually read the false information.This is a major hurdle since investors seldom read many of the documents filed with the SEC.
Correct Answer:
Verified
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