Accountants are rarely found liable for violating SEC Rule 10b-5 (prohibiting manipulative and deceptive practices to sell securities in interstate commerce).

Question

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While accountants may not be the primary violators of SEC Rule 10b-5, they can still be held liable for aiding and abetting someone else's violation of the rule. Additionally, if an accountant is aware of material misstatements or omissions in financial statements and fails to disclose them, they could be found liable under Rule 10b-5.

Accountants Are Rarely Found Liable for Violating SEC Rule 10b-5