The Private Securities Litigation Reform Act of 1995 provides that an auditor can be held liable in a private action for any finding, conclusion, or statement expressed in the report the Act requires the auditor to make to the SEC.

Question

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The Private Securities Litigation Reform Act of 1995 primarily aims to protect auditors from being held liable for forward-looking statements as long as these statements are identified as such and accompanied by meaningful cautionary statements. It does not make auditors automatically liable for any finding, conclusion, or statement in their reports to the SEC.

The Private Securities Litigation Reform Act of 1995 Provides That