5. Which of the following is not true about the report release date? (A) It is defined as the date after which existing documentation must not be deleted, and additions to the documentation file must be documented as such. (B) It is used to define the beginning of the retention period. (C) It is often the date on which the report is delivered to the client. (D) It is the date on which the auditor grants the client permission to use the report.

10. Major, Major, and Sharpe, CPAs, are the auditors of MacLain Technologies. In connection with the public offering (IPO) of $10 million of MacLain securities, Major expressed an unqualified opinion as to the financial statements. Subsequent to the offering, certain misstatements were revealed. Major has been sued by the purchasers of the stock offered pursuant to the registration statement that included the financial statements audited by Major. In the ensuing lawsuit by the MacLain investors, Major will be able to avoid liability if (A) the misstatements were caused primarily by MacLain. (B) it can be shown that at least some of the investors did not actually read the audited financial statements. (C) it can prove due diligence in the audit of the financial statements of MacLain. (D) MacLain had expressly assumed any liability in connection with the public offering.

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