Section 1 of the 1934 Securities Act imposes liability upon an accountant for negligence in the conduct of an audit.

Section 1 of the 1934 Securities Exchange Act does not impose liability on accountants for negligence in the conduct of an audit. Instead, it primarily deals with the creation of the Securities and Exchange Commission (SEC) and the regulation of securities exchanges. Liability for accountants under securities laws, particularly for negligence, is more directly addressed in other provisions and acts, such as Section 11 of the Securities Act of 1933 for false or misleading statements in registration statements, and Section 10(b) and Rule 10b-5 under the 1934 Act for fraud in connection with the purchase or sale of securities.