An accountant is not liable for a misstatement to a purchaser of securities who knew of the misstatement but invested anyway.

Name: An accountant is not liable for a misstatement to a purchaser of securities who knew of the misstatement but invested anyway.
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Question

Quizplus · Accepted Answer

If the purchaser knew of the misstatement but invested anyway, the accountant cannot be held liable for any resulting losses. The purchaser had the knowledge of the misstatement and knowingly took the risk of investing despite that knowledge.

An Accountant Is Not Liable for a Misstatement to a Purchaser