Suppose that the auditors in the preceding question participated knowingly in commission of violations of securities laws (with managers and directors of the audit client).What is the auditors' likely obligation?
A) $5,000,000.
B) Zero.
C) $2,250,000.
D) $1,500,000.

Question

Quizplus · Accepted Answer

If auditors knowingly participate in violations of securities laws, they can be held liable for damages, which could be substantial, such as $5,000,000 in this context.

Suppose That the Auditors in the Preceding Question Participated Knowingly