h. A CPA issued an unqualified opinion on the financial statements of a company that sold common stock in a public offering subject to the Securities Act of 1933. Based on a misstatement in the financial statements, the CPA is being sued by an investor who purchased shares of this public offering. Which of the following represents a viable defense?

Multiple Choice

• The investor has not proved fraud or negligence by the CPA.

• The investor did not actually rely upon the false statement.

• The CPA detected the false statement after the audit date.

• The false statement is immaterial in the overall context of the financial statements.