An accountant who prepares a financial state-ment in good faith may avoid liability under Section 18 of the Securities Ex-change Act of 1934.

Question

Quizplus · Accepted Answer

Section 18 of the Securities Exchange Act of 1934 allows an accountant to avoid liability if they prepared a financial statement in good faith and had no knowledge of any false or misleading information. However, it should be noted that this defense may not be used in cases of intentional or reckless conduct.

An Accountant Who Prepares a Financial State-Ment in Good Faith