Asked by
Kharl Michael
on Dec 19, 2024Verified
Under the Private Securities Litigation Reform Act, an accountant who participates in, but is unaware of, illegal conduct may be liable for proportionately less than the entire loss.
Private Securities Litigation Reform Act
A 1995 United States federal law that increased the standards for initiating securities fraud litigation to protect companies from frivolous lawsuits.
Illegal Conduct
Activities or actions that are forbidden by law, regulations, or statutes.
- Comprehend the principle of liability within professional services and the circumstances that can lead to a professional being deemed responsible for negligence or misconduct.
- Understand the consequences of fraud within professional contexts, encompassing both actual and constructive fraud.
Verified Answer
AL
Learning Objectives
- Comprehend the principle of liability within professional services and the circumstances that can lead to a professional being deemed responsible for negligence or misconduct.
- Understand the consequences of fraud within professional contexts, encompassing both actual and constructive fraud.
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