Question
An accounting firm made serious errors in providing audited financial statement to ABC Limited. These statements are used by (i) management , (ii) shareholders ,
An accounting firm made serious errors in providing audited financial statement to ABC Limited. These statements are used by (i)management, (ii)shareholders, and (iii)potentialshareholders.Your
company has investments in ABC Ltd, and you are an event planner for the company also has personal investments in ABC Ltd.
It is likely that one or all of the parties using the information will want to sue in negligence,
(a)Define negligence(2 marks)
(b)Of the parties mentioned who is likely to be successful in a negligence action.In doing so, you must identify the elements, and the test/measure that would be applied by the court (8 marks)
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