The Securities Exchange Act of 1933 places the burden of proof on which of the following?

Question

Quizplus · Accepted Answer

The Securities Exchange Act of 1933 places the burden of proof on the auditor defendant. This act holds auditors liable for failing to discover material misstatements or omissions in financial statements. As a result, they are expected to perform their duties with due diligence and care. When investors suffer losses as a result of financial fraud, they can file a lawsuit against the auditor who conducted the audit. In this case, the burden of proof is on the auditor to show that they followed the generally accepted auditing standards and did not engage in any fraudulent activities.

The Securities Exchange Act of 1933 Places the Burden of Proof