Under Section 10 of the 1934 Securities Exchange Act auditors are liable to security purchasers for:

Question

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Under Section 10 of the 1934 Securities Exchange Act, auditors are liable to security purchasers for intentional misstatements or omissions made with the intent to deceive or defraud. This is known as Section 10(b) liability, which applies to auditors who are involved in preparing or certifying financial statements or other reports submitted to the Securities and Exchange Commission. The act does not hold auditors liable for ordinary negligence or lack of due diligence.

Under Section 10 of the 1934 Securities Exchange Act Auditors