Accountants are subject to civil liability under the 1933 Act if the financial statements they prepare or certify for inclusion in a registration statement contain any untrue statement or omit any material fact, but only if reliance on the financial statements is proven.

Question

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Under the 1933 Act, accountants can be held liable for untrue statements or omissions in financial statements included in a registration statement without the need to prove reliance, as the burden of proof is on the defendant to show they exercised due diligence.

Accountants Are Subject to Civil Liability Under the 1933 Act