Under Section 11 of the Securities Act of 1933,an auditor may escape liability by proving he/she had no reason to believe and did not believe that there were any misstatements or omissions of material fact in the financial statements he/she audited.

Question

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Under Section 11 of the Securities Act of 1933,the due diligence defense for auditors requires that an auditor issuing an opinion regarding financial statements prove that he/she made a reasonable investigation and that he/she reasonably believed that there were no misstatements or omissions of material fact in the financial statements at the time the registration statement became effective.

Under Section 11 of the Securities Act of 1933,an Auditor