Under the Securities Act of 1933, If Damages Were Incurred

Multiple Choice

Under the Securities Act of 1933, if damages were incurred and there was a material misstatement or omission in the financial statements, the CPA will most likely lose the lawsuit unless:

A) The management intentionally deceived the auditors
B) The damages were incurred to a third party that was not a signatory to the contract
C) The CPA can shift the burden of proof to the investors
D) The CPA rebuts the allegations