To avoid liability for securities violations, an accountant must use due diligence in preparing a financial statement included in a registration statement-merely asking questions of a corporate officer or director meets this standard.

Question

Quizplus · Accepted Answer

Due diligence requires an accountant to conduct a thorough investigation and verification of the financial information, not just asking questions of corporate officers or directors.

To Avoid Liability for Securities Violations, an Accountant Must Use