neficial owners of Under the common law, which of the following elements must a
ID: 381956 • Letter: N
Question
neficial owners of Under the common law, which of the following elements must a plaintiff investor prove to establish a claim for ordinary negligence against a company's auditors? 8. 1. That plaintiff suffered a financial loss 2. That the auditors owed a duty of care to the plaintiff 3. That plaintiff relied on the auditors' attestation 4. That plaintiff's loss was caused by his/her reliance on the auditors during back R s necc nsationn pay effec is also ha after Regim the E rul attestation a. 1,2, 3 b. 1,3,4 c. 2,3,4 d. All of the above nt is hat sh nd fo 9. Regulation FD (Fair Disclosure) adopted by the SEC in 2000 a. Allows companies to intentionally disclose information to selected analysts as long as they make similar disclosures to someone else within 48 hours of the initial d off b. Makes it illegal for companies to selectively disclose information under any c. Requires that if issuers unintentionally disclose information to anyone, they must d. Does not allow any exclusions as the "equal access" rules make wide dissemination of circumstances disclose the information to the general public promptly (generally within 24 hours) information mandatory in all circumstances 10. The Sarbanes-Oxley Act's "Clawback provisions a. Allow company executives to keep any equity-based compensation they received during b. May require corporate executives to return incentive pay for a period for which the c Do not apply to any profit derived from sales of company stock during the 12-month d. Are clear about voluntary restatements, covered individuals, and the types of the 12-month period after restatement of the company's financials company has to restate its financials because of the executives' "misconduct" period immediately following restatement misconduct that trigger liability 11. The SEC regulation that prescribes the content of SEC filings other than financial statements is a. The Securities Act of 1933Explanation / Answer
8. optioin A is correct, all the three factors were true, but the last one is false. an auditor or company may not cause for their own actions or reliance. the investors may have different hopes and expectations, company is not liable for all those.
9. optino C is correct. fair disclosure statement says that: when a company announce some information, which is non publicly available, the same must be reveal to general public in the same sense.
10. option A ic correct.
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