Under the liability provisions of section 11 of the Securities Act of 1933,auditors may be liable to any purchaser of securities for certifying materially misstated financial statements that are included in the registration statement.Under section 11,which of the following must be proven by a purchaser of the security?
A)Reliance on financial statements: Yes; Fraud by auditors: Yes
B)Reliance on financial statements: Yes; Fraud by auditors: No
C)Reliance on financial statements: No; Fraud by auditors: Yes
D)Reliance on financial statements: No; Fraud by auditors: No

Question

Quizplus · Accepted Answer

Under Section 11 of the Securities Act of 1933, a purchaser does not need to prove reliance on the financial statements or fraud by the auditors to hold them liable for materially misstated financial statements in a registration statement.

Under the Liability Provisions of Section 11 of the Securities