An auditor who accepts erroneous corporate information which becomes part of an SEC filing may be found liable.

Question

Quizplus · Accepted Answer

Auditors have a duty to exercise due care and professional skepticism in their work, and if they accept erroneous corporate information without properly verifying it and it later becomes part of an SEC filing, they may be found liable for any inaccurate statements. This is because auditors have a responsibility to ensure that financial statements and other disclosures are accurate and in compliance with applicable laws and regulations.

An Auditor Who Accepts Erroneous Corporate Information Which Becomes Part