Financial statement as part of a registration state

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Nora, an accountant, prepares a financial statement as part of a registration state ment 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.

Reference no: EM131049211

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