Which of the following statements regarding auditors’ liability under the Securities Act of 1933 is not true?
a. The act relates to the initial issuance of securities to the public, normally through an initial public offering.
b. Auditors’ liability arises because of audited financial information filed with the SEC.
c. Third parties must demonstrate that they relied on misstated financial statements that were examined by auditors.
d. Auditors may be liable if they are found to have engaged in ordinary negligence.