Question

An investor seeking to recover stock market losses from a CPA firm associated with an initial offering of securities based on an unmodified opinion on financial statements that accompanied a registration statement, must establish that:

Answer 1

Answer:

The audited financial statements contain a false statement or omission of material fact.

Explanation:

Base on the scenario been described in the question, for an investor seeking to recover stock market losses from CPA, he must established that the audited financial statements contain a false statement or omission of material fact. If he can be able to establish this fact or prove that the statement contains false material, he will be able to recovery the stock losses in the market . The statement provides the prove he needs .