Petty Corp. made a public offering subject to the Securities Act of 1933. In connection with the offering, Ward & Co., CPAs, rendered an unmodified opinion on Petty's financial statements included in the SEC registration statement. Huff purchased 500 of the offered shares. Huff has brought an action against Ward under Section 11 of the Securities Act of 1933 for losses resulting from misstatements of facts in the financial statements included in the registration statement. Ward's weakest defense is that
A. Huff knew of the misstatements when Huff purchased the stock.
B. Huff's losses were not caused by the misstatements.
C. Ward was not in privity of contract with Huff.
D. Ward conducted the audit in accordance with professional standards.
Answer: C. Ward was not in privity of contract with Huff.
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