Bluetooth External Auditors is currently engaged in the audit of Farmside Enterprises. During the audit, it has been determined that Farmside has conducted an initial offering of common stock in order to raise needed capital for expansion. Senior management of Farmside is attempting to understand their liability in this case. Select all responses below which accurately describe Bluetooth's best response.

a) Initial stock offerings are regulated by the Securities Act of 1933. Under the provisions of this act, the auditor may also be liable for losses resulting from ordinary negligence.

b) The plaintiffs may be any person who acquired securities that were described in the firm's registration statement, regardless of whether or not they are a client of the auditor.

c) Initial stock offerings are regulated by the SEC act of 1934. Under the provisions of this act, the auditor may also be liable for losses resulting from gross negligence.

d) Plaintiffs who purchased securities as part of initial offering need to prove reliance on the false or misleading statements in order to prevail in court.