The partnership of Maxim & Rose, CPAs, has been engaged by their largest client, a limited partnership, to examine the financial statements in connection with the offering of 2,000 limited-partnership interests to the public at $5,000 per subscription. Under these circumstances, which of the following is true?
- Maxim & Rose may disclaim any liability under the Federal Securities Acts by an unambiguous, boldfaced disclaimer of liability on its audit report.
- Under the Securities Act of 1933, Maxim & Rose has responsibility only for the financial statements as of the close of the fiscal year in question.
- The dollar amount in question is sufficiently small so as to provide an exemption from the Securities Act of 1933.
- The Securities Act of 1933 requires a registration despite the fact that the client is not selling stock or another traditional “security.”