Selby,an Accountant and Auditor with ABC Accounting,was Auditing XYZ Company

Selby,an accountant and auditor with ABC Accounting,was auditing XYZ Company.Denali,the president of XYZ Company,told Selby that if the true condition of the company were exposed,Denali would certainly be fired.Denali is sure things can be turned around if Selby will only "help" out in the audit report.Selby agreed to include inaccurate numbers in the company's audit report knowing that the opinion would be included in the company's annual report on Form 10-K filed with the SEC.Unfortunately,Denali was not able to turn the company's performance around,and it went into bankruptcy later that year.Selby becomes aware that an investigation is being conducted.Which of the following is true regarding Selby's potential liability?

A) As a secondary actor,Selby cannot be found liable for the violation of any laws involving securities even though Selby was aware of how the audit opinion would be used.
B) As a primary actor,Selby can be found liable for the violation of some laws involving securities,but not Section 10(b) .
C) As a primary actor,Selby can be found liable for a violation of Rule 10(b) based on participation in the making of a false statement.
D) As a secondary actor,Selby can be found liable for the violation of Section 10(b) based on awareness of how the audit opinion would be used.