Why do accountants come under the purview of Section 18(a) of the Securities Exchange Act of 1934?
A) because they often file reports and other documents with the Securities and Exchange Commission (SEC) on behalf of clients
B) because certified public accountants (CPAs) are directly employed by the Securities and Exchange Commission (SEC)
C) because all companies require an accountant's approval before buying securities from the Securities and Exchange Commission (SEC)
D) because securities can only be bought through a certified public accountant (CPA)

Question

Quizplus · Accepted Answer

Accountants come under the purview of Section 18(a) of the Securities Exchange Act of 1934 because they often file reports and other documents with the SEC on behalf of clients. This section holds accountants responsible for any false or misleading statements made in these documents, making them liable for any damages resulting from misstatements or omissions.

Why Do Accountants Come Under the Purview of Section 18(a)