Acpa 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?
answer

the misstatement is immaterial in the overall context of the financial statements.

the cpa detected the misstatement after the audit report date.

the investor has not proven cpa negligence.

the investor did not rely upon the financial statement.

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east westsales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 )the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss) of: multiple choice$91,900$(64,100)$(142,000)$(50,100)