Gold, CPA, rendered an unqualified opinion on the financial statements of Eastern Power Company. Egan purchased Eastern bonds in a public offering subject to the Securities Act of 1933. The registration statement filed with the SEC included the audited financial statements. Gold is being sued by Egan under Section 11 of the Securities Act of 1933 for the misstatements contained in the financial statements. To prevail, Egan must prove

Question

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Under Section 11 of the Securities Act of 1933, a plaintiff does not need to prove reliance or scienter to prevail. They only need to show that there was a material misstatement or omission in the registration statement.

Gold, CPA, Rendered an Unqualified Opinion on the Financial Statements