When a plaintiff is suing the auditor for damages under Rule 10(b)-5 of the 1934 Securities Act,

Question:

When a plaintiff is suing the auditor for damages under Rule 10(b)-5 of the 1934 Securities Act, which of the following is not part of the plaintiff’s burden of proof?

a. The financial statements contained a material, factual misrepresentation or omission.

b. The auditor was negligent.

c. The plaintiff relied on the financial statements.

d. Damages were suffered as a result of reliance on the financial statements.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

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