Tickitt & Run, the auditors to Daffodil Ltd, gave an unqualified report on 14 January 2X11 on the accounts for the year ending 30 November 2X10. These accounts were seen by The Wednesfield Bank PLC in February 2X11 and the bank lent £250 000 to Daffodil on short-term overdraft on 19 March 2X11. In March 2X12 the company went into liquidation still owing the bank £200 000. The company was hopelessly insolvent and the bank recovered nothing. It turned out that the accounts for the year ended 30 November 2X10 were defective in that several substantial payables were omitted from the accounts. Had these payables been included it would have been apparent that Daffodil was not a going concern in November 2X10.

Questions:-

1. Can the bank recover from Tickitt & Run?