In which type of court case is proving "due diligence" essential to the auditor's defense?
A)Court cases brought under the Securities Exchange Act of 1933
B)Court cases brought under the Securities Exchange Act of 1934
C)Court cases brought by clients under common law
D)Court cases brought by third parties under common law

Question

Quizplus · Accepted Answer

Under the Securities Exchange Act of 1933, auditors can use the defense of "due diligence" to show they conducted a reasonable investigation and had reasonable grounds to believe the financial statements were accurate.

In Which Type of Court Case Is Proving "Due Diligence