Under the liability provisions of Section 11 of the Securities Act of 1933, a CPA may be liable to any purchaser of a security for certifying materially misstated financial statements that are included in the security's registration statement. Under Section 11, which of the following must be proven by a purchaser of the security?

Question

Quizplus · Accepted Answer

Under Section 11 of the Securities Act of 1933, a purchaser of a security does not need to prove that the CPA committed fraud or that they relied on the financial statements. The section imposes liability for any material misstatements in the registration statement, regardless of fraud or reliance.

Under the Liability Provisions of Section 11 of the Securities