How does the Securities Act of 1933, which imposes civil liability on auditors for misrepresentations or omissions of material facts in a registration statement, expand auditors’ liability to purchasers of securities beyond that of common law?

a. Purchasers have to prove only that a loss was caused by reliance on audited financial statements.

b. Privity with purchasers is not a necessary element of proof.

c. Purchasers have to prove either fraud or gross negligence as a basis for recovery.

d. Auditors are held to a standard of care described as “professional skepticism.”