Which Statement Is Correct Concerning an Auditor's Statutory Legal Liability

Which statement is correct concerning an auditor's statutory legal liability?

A) The Securities Act of 1933 broadened the auditor's common law liability and the Securities Exchange Act of 1934 narrowed it.
B) The auditor has a greater burden of defense under the Securities Act of 1933 than under the Securities Exchange Act of 1934.
C) Criminal liability only arises under state law.
D) Statutory liability usually modifies the auditor's liability to the client.

Correct Answer:

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