The Securities Act of 1933 significantly differs from other statutes concerning auditor liability in that:
A) The plaintiff does not need to show negligence.
B) The plaintiff does not need to show (s)he relied on the financial statements.
C) Any third party that purchased securities described in the registration statement may sue the auditor for any material misrepresentation.
D) All of the above.

Question

Quizplus · Accepted Answer

The Securities Act of 1933 imposes strict liability on auditors, meaning that the plaintiff does not need to prove negligence. Additionally, the plaintiff does not need to prove reliance on the financial statements. Finally, any third party that purchased securities described in the registration statement may sue the auditor for any material misrepresentation. This is different from other statutes, such as common law, which typically require a showing of negligence and reliance on the financial statements.

The Securities Act of 1933 Significantly Differs from Other Statutes