Section 401 of the Sarbanes-Oxley Act requires that each financial statement to be filed with the SEC should reflect all material correcting adjustments. How does this requirement relate to the auditors legal liability for reporting illegal acts? What are the procedures to be followed by an auditor upon discovering that the client has committed an illegal act? .
What are the legal requirements for a third party to sue an auditor under Section 10 and Rule 10b-5 of the Securities Exchange Act of 1934? How do these requirements relate to the Hochfelder decision?
Please answer in 5-7 sentences one paragraph per question. APA Style with citations/references. Please do not use wikipedia as a source. Due by 10:30 Eastern USA.
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