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To Prove His/her Due Diligence Defense Under Securities Act Section

Question 60

Multiple Choice

To prove his/her due diligence defense under Securities Act Section 11 with regard to audited financial statements,an officer of the issuer must prove which of the following?


A) The officer made a reasonable investigation into the accuracy of the audited financial statements.
B) The officer believed the financial statements did not omit or misstate a material fact.
C) The officer had no intent to misstate or omit a material fact in the audited financial statements.
D) The officer had no reason to believe the financial statements omitted or misstated a material fact.

Correct Answer:

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