logo
Ask Question

Asked by Islam Soliman on May 27, 2024

verifed

Verified

The Private Securities Litigation Reform Act of 1995 provides that an auditor can be held liable in a private action for any finding, conclusion, or statement expressed in the report the Act requires the auditor to make to the SEC.

Private Securities Litigation Reform Act

A 1995 federal law that imposed several significant reforms on the process of bringing securities fraud lawsuits in order to reduce frivolous claims.

Auditor Liability

The legal responsibility of auditors for failing to detect and report inaccuracies or fraud in the financial statements they review.

SEC

Stands for the Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.

  • Discern the regulatory environment affecting accountants, involving oversight authorities and legal liabilities according to disparate securities acts.
verifed

Verified Answer

SN
Shiva Narsimha PulluriJun 01, 2024
Final Answer :
False
Explanation :
The Private Securities Litigation Reform Act of 1995 primarily aims to protect auditors from being held liable for forward-looking statements as long as these statements are identified as such and accompanied by meaningful cautionary statements. It does not make auditors automatically liable for any finding, conclusion, or statement in their reports to the SEC.

Related questions

Section 1 of the 1934 Securities Act Imposes Liability Upon ...

_______ at the Federal Level Manage Public Funds,investigate White-Collar Crime,perform ...

In the United States,______ Is Primarily Responsible for Evaluating,setting,or Modifying ...

Which Principles Encompass the Conventions,rules,and Procedures for Determining Acceptable Accounting ...

Wallace Was Also Charged Under Section 15 of the Securities ...