The same defenses available to auditors under common-law suits filed by third parties-nonnegligent performance, lack of duty, and absence of causal connection-are not available to auditors for lawsuits under the Securities Act of 1934.

Question

Quizplus · Accepted Answer

The statement is incorrect. The Securities Act of 1934 does not create a private right of action against auditors. Therefore, the question of whether these defenses are available to auditors for lawsuits under the Securities Act of 1934 is irrelevant. The private right of action under the Securities Act of 1934 applies to issuers, underwriters, and other persons who violate the antifraud provisions of the act, not to auditors.

The Same Defenses Available to Auditors Under Common-Law Suits Filed