Which of the following is an accurate statement regarding Rule 10b-5 of the Securities Exchange Act of 1934?
A) The Supreme Court has ruled that liability under Rule 10b-5 does not extend to aiders or abettors who participated in financial statement misstatements that were not the primary defendants.
B) Federal court decisions have clarified that Rule 10b-5 applies only to direct sellers.
C) Hochfelder and subsequent court decisions have increased the liability of auditors under Rule 10b-5.
D) According to most recent court decisions, poor judgment is proof of fraud.
Correct Answer:
Verified
Q134: Under the Securities Act of 1933, a
Q135: Under the Securities Act of 1933,
A) any
Q136: Little enforcement of the provisions of the
Q137: The only parties who can recover from
Q138: Discuss the sanctions the Securities and Exchange
Q140: Discuss at least 3 steps the AICPA
Q141: The Sarbanes-Oxley Act of 2002 makes destruction
Q142: Discuss at least three specific actions which
Q143: CPAs can be held liable for criminal
Q144: Discuss some of the steps practicing auditors
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents