The Securities Act of 1933 and Securities Exchange Act of 1934 contain

Question

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The Securities Act of 1933 and Securities Exchange Act of 1934 contain both civil and criminal liability provisions applicable to auditors. These provisions are in place to hold auditors accountable for any material misstatements or omissions made in the financial statements or other disclosures of public companies. Auditors can be held civilly liable through lawsuits brought by investors or the SEC, and can also face criminal charges if they knowingly or recklessly certify misleading financial statements.