Explain the “safe harbor” provision in the PSLRA and how it establishes the auditor’s legal liability with respect to forward-looking information?

Write 6 to 7 sentences for each questions.

1) How does Section 806 of the Sarbanes-Oxley Act promote whistleblowing? Do you think it is ethically proper for a piece of legislation to encourage whistleblowing on the part of corporate employees? Why or why not? How do legal considerations relate to a CPA’s ethical responsibilities for whistleblowing under the AICPA Code?

2) Explain the “safe harbor” provision in the PSLRA and how it establishes the auditor’s legal liability with respect to forward-looking information?

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