The due diligence defense is a broad defense available to an accountant for a claim under rule 10b-5 of the Securities Exchange Act of 1934.

Question

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The due diligence defense is not applicable to claims under rule 10b-5; it is typically associated with Section 11 of the Securities Act of 1933. Rule 10b-5 focuses on fraud and does not provide a due diligence defense.

The Due Diligence Defense Is a Broad Defense Available to an Accountant