Which of the following can be used by an accountant to counter liability imposed under Section 11(a)of the Securities Act of 1933?
A) exclusionary rule
B) due diligence defense
C) the Ultramares doctrine
D) the foreseeability standard

Question

Quizplus · Accepted Answer

The due diligence defense can be used by an accountant to counter liability imposed under Section 11(a)of the Securities Act of 1933. This defense states that the accountant must prove that they conducted a reasonable investigation of the financial statements and had a reasonable basis for any statements made. The exclusionary rule does not apply in this scenario as it is a criminal law concept. The Ultramares doctrine is a common law principle used to determine if an accountant owes a duty of care to a third party, but does not apply to liability under Section 11(a). The foreseeability standard is a legal principle used to determine if a party is liable for damages, but again does not apply to liability under Section 11(a).

Which of the Following Can Be Used by an Accountant