The Private Securities Litigation Reform Act of 1995 applies the practice of ______ to auditor liability determinations.

Question

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The Private Securities Litigation Reform Act of 1995 applies proportionate liability to auditor liability determinations. This means that auditors are only liable for damages in proportion to their degree of fault, rather than being held fully responsible for any damages incurred by investors. This helps to limit the potential liability of auditors in securities litigation.

The Private Securities Litigation Reform Act of 1995 Applies the Practice