Under the anti-fraud provisions of section 10(b)of the Securities Exchange Act of 1934,auditors may be liable if they acted
A) with ordinary negligence.
B) with independence.
C) without due diligence.
D) without good faith.

Question

Quizplus · Accepted Answer

Auditors may be liable under section 10(b) of the Securities Exchange Act of 1934 if they acted without good faith. This means that they knowingly made false statements or omissions, or acted in a reckless or negligent manner with respect to their auditing duties. While independence and due diligence are important considerations for auditors, they are not the specific criteria for determining liability under section 10(b). Ordinary negligence may also lead to liability under other legal provisions, but is not sufficient for liability under section 10(b).

Under the Anti-Fraud Provisions of Section 10(b)of the Securities Exchange