Under the NASAA Model Rule on Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers, an investment adviser who has custody of clients' securities or funds must:

keep funds deposited in accounts containing only client funds.
be subject to a surprise audit performed at least annually by an independent accountant.
send clients' statements at least once every three months showing balances.
A)II and III.
B)I, II and III.
C)I and III.
D)I and II.