In addition to proving a loss,which of the following must be proven by a third party suing a CPA under Section 10 of the 1934 Securities Exchange Act?
$\begin{array}{lll}&\text { Misleading Financial Statements }&\text { Reliance on financial statements }\
\text { A } & \text { Yes } & \text { Yes } \
\text { B. } & \text { Yes } & \text { No } \
\text { C. } & \text { No } & \text { Yes } \
\text { D. } & \text { No } & \text { No }
\end{array}$

Question

In addition to proving a loss,which of the following must be proven by a third party suing a CPA under Section 10 of the 1934 Securities Exchange Act?  
$\begin{array}{lll}&\text { Misleading Financial Statements }&\text { Reliance on financial statements }\
\text { A } & \text { Yes } & \text { Yes } \
\text { B. } & \text { Yes } & \text { No } \
\text { C. } & \text { No } & \text { Yes } \
\text { D. } & \text { No } & \text { No }
\end{array}$

Quizplus · Accepted Answer

Under Section 10 of the 1934 Securities Exchange Act, a third party suing a CPA must prove that they relied on misleading financial statements, which caused them a loss. This means both misleading financial statements and reliance on those statements must be proven.

In Addition to Proving a Loss,which of the Following Must