Which of the following may an auditor use as a defense under the Securities Act of 1933?
A)Contributory negligence.
B)Scienter.
C)Due care.
D)Immaterial loss.

Question

Quizplus · Accepted Answer

An auditor may use the defense of due care under the Securities Act of 1933, which requires that auditors perform their work with reasonable care and skill. Contributory negligence and immaterial loss are not valid defenses, while scienter (knowingly making false or misleading statements) is not a defense but rather a potential basis for liability.

Which of the Following May an Auditor Use as a Defense