Under the securities act of 1933, if damages were incurred and there was a material misstatement or omission in the financial statements, the cpa will most likely lose the lawsuit unless:
a. the damages were incurred to a third party that was not a signatory to the contract
b. the management intentionally deceived the auditors
c. the cpa rebuts the allegations
d. the cpa can shift the burden of proof to the investors

c. The CPA rebuts the allegations

Explanation:

The securities act of 1933 was created to protect investors from fraud and bubbles exploiding after the big market crash of 1929, under this law all companies are bound to present their financial reports and statements and in case of failing to do so, or presenting them altered, the CPA in charge will loose the lawsuit, unless he can prove that the allegations are false.

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answer; (c) communism and socialism;