Kathy,a certified public accountant,prepares a registration statement on behalf of Kyoung,Inc.Kyoung provides financial information to Kathy that is inaccurate.Kathy investigates the information and recognizes a number of problems,which she shares with Kyoung.The registration statement contains corrected financial information.Kathy's investigation,however,was not reasonable,and it fails to reveal some material facts Kyoung concealed,which results in a misrepresentation of the true condition of the company.If someone purchases stock in the company and suffers a loss,what is the liability of Kathy and Kyoung,Inc.?

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The Answer of Kathy,a certified public accountant,prepares a registration statement on behalf of Kyoung,Inc.Kyoung provides financial information to Kathy that is inaccurate.Kathy investigates the information and recognizes a number of problems,which she shares with Kyoung.The registration statement contains corrected financial information.Kathy's investigation,however,was not reasonable,and it fails to reveal some material facts Kyoung concealed,which results in a misrepresentation of the true condition of the company.If someone purchases stock in the company and suffers a loss,what is the liability of Kathy and Kyoung,Inc.?

Kathy,a Certified Public Accountant,prepares a Registration Statement on Behalf of Kyoung,Inc.Kyoung