If auditors can prove that a reasonable examination was performed,then auditors are not liable for damages under section 11 of the Securities Act of 1933.

Question

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Section 11 of the Securities Act of 1933 provides a defense for auditors if they can demonstrate that they conducted a reasonable investigation and had reasonable grounds to believe that the statements in the registration statement were true and not misleading.

If Auditors Can Prove That a Reasonable Examination Was Performed,then