Which of the following is true of Section 10A of the Securities Exchange Act of 1934?
A)It prohibits manipulative or deceptive practices in probate.
B)It is a due diligence defense an accountant can assert to avoid civil liability.
C)It imposes duties on auditors to detect and report illegal acts committed by their clients.
D)It imposes criminal liability on accountants for making material misstatements or omissions in their performance of non-audit services.

Question

Quizplus · Accepted Answer

Section 10A of the Securities Exchange Act of 1934 imposes duties on auditors to detect and report illegal acts committed by their clients. Option A is not correct as Section 10A is related to securities exchange and not probate. Option B is incorrect as the due diligence defense is offered under Rule 302 of Regulation S-T. Option D is incorrect as criminal liability for making material misstatements or omissions in non-audit services is not specified under Section 10A.

Which of the Following Is True of Section 10A of the Securities