As a defense under Rule 10b-5,auditors must prove that they acted in good faith and had no knowledge of the material misstatements in the financial statements.

Name: As a defense under Rule 10b-5,auditors must prove that they acted in good faith and had no knowledge of the material misstatements in the financial statements.
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This statement is correct as good faith and lack of knowledge of material misstatements are requirements for a defense under Rule 10b-5 for auditors.

As a Defense Under Rule 10b-5,auditors Must Prove That They