An accountant who prepares a financial state?ment in good faith may avoid liability under Section 18 of the Securities Ex?change Act.

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Section 18 of the Securities Exchange Act provides a defense for accountants who prepare financial statements in good faith and with reasonable care. If an accountant can demonstrate that they acted in good faith and with due diligence, they may avoid liability for any misleading statements in the financial statements. However, this defense may not apply if the accountant knowingly or recklessly included false or misleading information in the financial statements.

An Accountant Who Prepares a Financial State?ment in Good Faith