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54. Sharp & Co., CPAs, was engaged by Radar Corp. to audit its nancial statements. Sharp issued an unqualified opinion on Radar's nancial statements. Radar
54. Sharp & Co., CPAs, was engaged by Radar Corp. to audit its nancial statements. Sharp issued an unqualified opinion on Radar's nancial statements. Radar has been accused of making negligent misrepresentations in the financial statements which Wisk relied upon when purchasing Radar stock. Sharp was not aware of the misrepresentations nor was it negligent in performing the audit. If Wisk sues Sharp for damages based upon Section 10(B) and Rule 10b-5 of the Securities Exchange Act of 1934, Sharp will A. Lose, since the statements contained negligent misrepresentations. B. Lose, since Wisk relied upon the financial statements. C. Prevail, since some element of scienter must be proved. D. Prevail. since Wisk was not in privitv of contract with Sharp
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