Auditor defenses for suits brought under the Securities Act of 1933 include which of the following?

Question

Quizplus · Accepted Answer

The defense that the auditor followed the required level of professional performance on the engagement is a valid defense against suits brought under the Securities Act of 1933. The defense that the auditor is an expert in financial accounting is not a sufficient defense in itself, and the defense that the financial statements were materially misstated and the auditor was aware of that fact is not a defense at all. The defense that the contract is between the auditor and the shareholders is also not a valid defense.

Auditor Defenses for Suits Brought Under the Securities Act of 1933