Smith & Jones Rendered an Unmodified Auditor's Opinion on the Financial

Multiple Choice

Smith & Jones rendered an unmodified auditor's opinion on the financial report of a company that sold shares in a public offering. Based on a false statement in the financial report, Smith & Jones is being sued by an investor
Who purchased shares in this public offering. Which of the following represents a viable defence?

A) The investor has not met the burden of proving fraud or negligence by Smith & Jones.
B) The false statement is immaterial in the overall context of the financial report.
C) Detection of the false statement by Smith & Jones occurred after the date of the auditor's report.
D) The investor did not actually rely upon the false statement.