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LekaFEV [45]
3 years ago
14

Rinetin corporation has been falsifying its financial statements for the past year. the staff in the accounting department of th

e company have been fake employee ids and recording payments on the company's payroll. the funds sent to these fake employees are then redirected to the company's bank accounts. when rinetin corporation is audited, the auditors fail to discover this fraud because of their negligence. months later, a whistle-blower alerts the appropriate authorities about the company's deceptive practices. in this scenario, the accountants who conducted the audit of the company will be held civilly liable under __________.​
Business
1 answer:
max2010maxim [7]3 years ago
8 0

The accountants who conducted the audit in the Rinetin Corporation who fail to discover the falsification of the company's financial statements for the past year because of their negligence will be held civilly liable under Section 11(a) of the Securities Act of 1933.





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