Patricia,a Certified Public Accountant,was hired to audit the financial statements of a large Internet retailer that was planning a new issuance of stock.The client had made several public offerings of stock in recent years and was required to meet the reporting requirements of the Securities Exchange Act of 1934.In performing her audit,Patricia was negligent.Although she was unaware of the fact,the financial statements greatly overstated accounts receivable because the client had recorded numerous fictitious sales.The audited financial statements were included in the registration statement for the new public offering and in the reports filed under the Securities Act of 1934.Patricia faces statutory liability under:

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The Answer of Patricia,a Certified Public Accountant,was hired to audit the financial statements of a large Internet retailer that was planning a new issuance of stock.The client had made several public offerings of stock in recent years and was required to meet the reporting requirements of the Securities Exchange Act of 1934.In performing her audit,Patricia was negligent.Although she was unaware of the fact,the financial statements greatly overstated accounts receivable because the client had recorded numerous fictitious sales.The audited financial statements were included in the registration statement for the new public offering and in the reports filed under the Securities Act of 1934.Patricia faces statutory liability under:

Patricia,a Certified Public Accountant,was Hired to Audit the Financial Statements