Answer Happy

Match each statement with the appropriate term. A client firm is filing suit for their auditor's negligence in performing an audit. An investor who purchased the stock of a public company in an initial public offering is filing a suit for losses sustained in the purchase of the stock. A bank is filing suit for misleading financial statements because the firm defaulted on the loan, and the firm's financial statements were audited by the CPA. An investor who purchased shares in a publicly-held company from another investor is filing suit for losses sustained on the stock. Places limits on the amount of auditor liability Auditors are only liable if there is intent to decieve (scienter). A. Unqualified Audit Opinion B. Securities Act of 1933 C. Common Law D. Private Securities Litigation Reform Act of 1995 E. Securities Exchange Act of 1934