BGH Accounting firm audited the financial statements that were included in E-prise's registration statement.The financial statements overstated sales by 2000%.In conducting the audit,BGH did not comply with generally accepted auditing standards (GAAS).Under Section 11 of the 1933 Act,BGH is liable for any material misstatement or omission in the financial statements it prepared for E-prise.

Question

Quizplus · Accepted Answer

Under Section 11 of the 1933 Act, an accounting firm can be held liable for any material misstatement or omission in the financial statements it prepared for a company. In this case, BGH accounting firm audited the financial statements for E-prise and the statements overstated sales by 200%. As a result, BGH can be held liable under Section 11 for the material misstatement in the financial statements.

BGH Accounting Firm Audited the Financial Statements That Were Included