Which of the following statements about the Securities Act of 1933 is not true?

Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter15: Audit Reports On Financial Statements
Section: Chapter Questions
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Please answer with reason for all why the option is correct and why the other options are incorrect
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Which of the following statements about the Securities Act of 1933 is not true? A. The auditor will not be liable if he or she can demonstrate due diligence in performing the audit.

B. The third-party user does not have the burden of proof that he or she relied on the financial statements.

C. The third-party user does not have the burden of proof that the loss was caused by the misleading financial statements.

D. The third party has the burden of proof that the auditor was either negligent or fraudulent in doing the audit.

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