Charlene, a newly-licensed CPA, who set up an office in South Beach, prepared the expertise portion of the registration statement and prospectus for the IPO of the Cardozo Corporation. Charlene took her job very seriously and spent a great deal of time preparing the registration statement. A year after the registration statement was filed with the SEC, the SEC began to investigate the company and claims that the information in Charlene's statement was misleading, because some of the information given to her by the corporation (on which she based her report) was false. Charlene had tried to verify the information in the course of her engagement, but she was not able to do so. An investor of Cardozo, who never read the IPO prospectus or the registration statement that was filed with the SEC, is now suing Charlene, claiming that she violated the Sec. 11 of the1933 Securities Act. Is Charlene liable to the investor? Why or why not? Does she have any defenses available to her? Discuss.