Austin LLP,a CPA firm,audits financial statements of Cooley Company.Cooley tells Austin that the statements will be used to sell preferred shares in a registered offering under the Securities Act of 1933.Austin is concerned about its potential liability under Section 11 of the Securities Act of 1933 for mistakes in the audited financial statements.Discuss Austin's due diligence defense under Section 11.

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The Answer of Austin LLP,a CPA firm,audits financial statements of Cooley Company.Cooley tells Austin that the statements will be used to sell preferred shares in a registered offering under the Securities Act of 1933.Austin is concerned about its potential liability under Section 11 of the Securities Act of 1933 for mistakes in the audited financial statements.Discuss Austin's due diligence defense under Section 11.

Austin LLP,a CPA Firm,audits Financial Statements of Cooley Company