Title Nora, an accountant, prepares a financial statement as part of a registration statement that Omega,. Description Nora, an accountant, prepares a financial statement as part of a registration statement that Omega, Inc., files with the Securities and Exchange Commission before making a public offering of securities. The statement contains a misstatement of material fact that is not attributable to Nora's fraud or negligence. Pat relies on the misstatement, buys some of the securities, and suffers a loss. Can Nora be held liable to Pat? Explain. (See Potential Liability of Accountants under Securities Laws.)

Contemporary Auditing
11th Edition
ISBN:9781337650380
Author:KNAPP
Publisher:KNAPP
Chapter1: Comprehensive Cases
Section1.8: Livent, Inc.
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Title
Nora, an accountant, prepares a financial statement as part of a registration statement that Omega,.
Description
Nora, an accountant, prepares a financial statement as part of a registration statement that Omega, Inc.,
files with the Securities and Exchange Commission before making a public offering of securities. The
statement contains a misstatement of material fact that is not attributable to Nora's fraud or negligence.
Pat relies on the misstatement, buys some of the securities, and suffers a loss. Can Nora be held liable to
Pat? Explain. (See Potential Liability of Accountants under Securities Laws.)
Transcribed Image Text:Title Nora, an accountant, prepares a financial statement as part of a registration statement that Omega,. Description Nora, an accountant, prepares a financial statement as part of a registration statement that Omega, Inc., files with the Securities and Exchange Commission before making a public offering of securities. The statement contains a misstatement of material fact that is not attributable to Nora's fraud or negligence. Pat relies on the misstatement, buys some of the securities, and suffers a loss. Can Nora be held liable to Pat? Explain. (See Potential Liability of Accountants under Securities Laws.)
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