SOLVED

46) Under the Sarbanes-Oxley Act, what are the penalties for willful violation of the section requiring the retention of working papers? A) Accountants may be fined but not imprisoned. B) Accountants may be fined, imprisoned for up to five years, or both. C) There are no penalties because the Sarbanes-Oxley Act does not require the retention of working papers. D) Accountants may be fined, imprisoned for up to ten years, or both. E) Accountants may be fined or imprisoned for up to ten years, but not both. 47) Which section of the Securities Act makes accountants civilly liable for misstatements and omissions of material facts made in the registration statements required by the SEC? A) Section 12 of the Securities Act of 1933 B) Section 12 of the Securities Act of 1934 C) Section 13 of the Securities Act of 1935 D) Section 11 of the Securities Act of 1933 E) Section 10 of the Securities Act of 1934 48) Which of the following is true regarding what a plaintiff must do in order to recover damages under the Securities Act of 1933 after purchasing a security covered by a registration statement containing false information or missing information? A) A plaintiff must prove reliance on the registration statement. B) The plaintiff must establish reliance on the financial statement, privity with the accountant, and also that the securities were purchased in an initial public offering. C) A plaintiff must prove privity with the accountant at issue. D) The plaintiff does not have to prove reliance on the financial statement nor must the plaintiff prove contractual privity. E) The plaintiff must establish reliance and privity. 49) For which of the following does the Securities Exchange Act impose liability? A) Negligence in performing an audit or in the construction of a financial statement. B) Fraudulent statements made to courts. C) Fraudulent statements made to a client in connection with performing an audit. D) Fraudulent statements made to the SEC. E) Fraud in performing an audit. 50) Which of the following is true regarding any affirmative defenses available under Section 20(a) of the Securities Exchange Act? A) Comparative negligence is an affirmative defense. B) Comparative negligence and contributory negligence are affirmative defenses, and also an affirmative defense exists when the controlling person acted in good faith and did not directly or indirectly induce the act or acts constituting the underlying violation or cause of action. C) An affirmative defense exists when the controlling person acted in good faith and did not directly or indirectly induce the act or acts constituting the underlying violation or cause of action. D) There are no affirmative defenses available. E) Contributory negligence is an affirmative defense. Â Â