Section 11 of the 1933 Securities Act uses the term "material fact" to limit the amount of information required. Under the Act, the standard used to determine the materiality of an item:
A) is the auditor's professional judgment.
B) has been established by the SEC as a percent of net income or of total assets.
C) can be found in pronouncements of the FASB.
D) is the average prudent investor.
E) can be found in pronouncements of the AICPA.
Correct Answer:
Verified
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