Accountants can be found liable for violating Section 18(a)of the Securities Exchange Act of 1934 since ________.
A)they often file reports and other documents with the SEC on behalf of clients
B)CPAs are directly employed by the SEC
C)all companies require an accountant's approval before buying securities from the SEC
D)securities can only be bought through a CPA

Question

Quizplus · Accepted Answer

Section 18(a) of the Securities Exchange Act of 1934 holds accountants liable for any false or misleading statements in reports and other documents filed with the SEC on behalf of their clients. Therefore, accountants can be found liable if they knowingly or recklessly make false or misleading statements in these documents.

Accountants Can Be Found Liable for Violating Section 18(a)of the Securities