Which of the following statements about the Securities Act of 1933 is not true?(1) The third-party user does not have the burden of proof that she/he relied on thefinancial statements.(2) The third party has the burden of proof that the auditor was either negligent orfraudulent in doing the audit.(3) The third-party user does not have the burden of proof that the loss was causedby the misleading financial statements.(4) The auditor will not be liable if he or she can demonstrate due diligence inperforming the audit.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Which of the following statements about the Securities Act of 1933 is not true?
(1) The third-party user does not have the burden of proof that she/he relied on the
financial statements.
(2) The third party has the burden of proof that the auditor was either negligent or
fraudulent in doing the audit.
(3) The third-party user does not have the burden of proof that the loss was caused
by the misleading financial statements.
(4) The auditor will not be liable if he or she can demonstrate due diligence in
performing the audit.

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