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

Quizplus · Accepted Answer

The Private Securities Litigation Reform Act of 1995 limits the liability of auditors by establishing a proportionate liability standard, meaning auditors are only liable for the portion of damages corresponding to their level of responsibility.

The Private Securities Litigation Reform Act of 1995 Provides That