Which of the following defenses may be raised by an accountant under Section 11 of the 1933 Securities Act?

Question

Quizplus · Accepted Answer

An accountant may raise the defense of due diligence under Section 11 of the 1933 Securities Act, but not the defense of privity. Privity is a contractual relationship between two parties and does not apply to accountants. However, due diligence refers to the steps taken by the accountant to ensure the accuracy and completeness of the financial statements provided in the registration statement.

Which of the Following Defenses May Be Raised by an Accountant