Asked by Abbie Medina on Jun 09, 2024
Verified
If BigCo,Inc.decides to file a registration statement with the SEC,Accounting Firm PLLC can protect itself from potential lawsuits if it has conducted its own due diligence.
Due Diligence
Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or transaction with another party.
Registration Statement
A statement required by the Securities and Exchange Commission to indicate details about a business selling securities.
- Acknowledge the significance and consequences of certifications and opinions provided by professionals.
Verified Answer
CJ
Caleb JamiesonJun 14, 2024
Final Answer :
True
Explanation :
By conducting its own due diligence, Accounting Firm PLLC can ensure the accuracy and completeness of its audit work and disclosures, which can help protect it from potential lawsuits related to the registration statement filed with the SEC.
Learning Objectives
- Acknowledge the significance and consequences of certifications and opinions provided by professionals.
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