BGH Accounting firm audited the financial statements that were included in E-prise's registration statement.The financial statements overstated sales by 2000%.In conducting the audit,BGH did not comply with generally accepted auditing standards (GAAS).Under Section 11 of the 1933 Act,BGH is liable for any material misstatement in the financial statements.

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As per Section 11 of the 1933 Act, the auditing firm is liable for any material misstatement in the financial statements. In this case, BGH Accounting firm was responsible for auditing the financial statements that overstated sales by 2000%. Additionally, they did not comply with generally accepted auditing standards (GAAS). Therefore, BGH is liable for any resulting damages to investors under Section 11 of the 1933 Act.

BGH Accounting Firm Audited the Financial Statements That Were Included