Which statement best expresses the factors that purchasers

(1) The purchasers of securities must prove ordinary negligence by the auditors and reliance on the audited financial statements.

(2) The purchasers of securities must prove that the financial statements were misleading and that they relied on them to purchase the securities.

(3) The purchasers of securities must prove that the financial statements were mislead­ing; then, the burden of proof is shifted to the auditors to show that the audit was performed with “due diligence.”

(4) The purchasers of securities must prove that the financial statements were misleading and the auditors were negligent.