Rand, an Accountant, Includes a False Statement in a Report

Multiple Choice

Rand, an accountant, includes a false statement in a report for Social Media Inc. that is filed with the Securities and Exchange Commission. When Teo buys stock in Social Media and loses money on the investment, he files a suit against Rand, alleging fraud under the 1934 Securities Exchange Act. To avoid liability, Rand can show that he

A) intended to defraud Social Media, not Teo.
B) intended to profit on stock trades generally, not only Teo's.
C) is an otherwise competent accountant.
D) had no knowledge that the statement was false.