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.

Question

khaled gamal · Accepted Answer

Final Answer : D, Explanation :  Nonexperts meet their due diligence defense for parts contributed by experts if they had no reason to believe and did not believe that the expertised parts misstated or omitted any material fact.

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