Question
Butter and Scotch LLP (B&S) is the auditor of Panama Inc., a national public grocery chain whose head office is based in Toronto. Which of
Butter and Scotch LLP (B&S) is the auditor of Panama Inc., a national public grocery chain whose head office is based in Toronto. Which of the following best describes B&S's duty of care? a) There is legal contract between B&S and Panama. Thus, B&S's duty of care to Panama is a contractual one and this protects B&S and cannot give rise to an action for negligence. b) Since B&S's contract is with the client company, Panama, the duty of care is owed only to Panama and not to the body of shareholders as a whole. c) Although B&S's contract is with the client company, Panama, the duty of care is owed to both the client company and the individual shareholders of Panama. d) Although B&S's contract is with the client company, Panama, the duty of care is owed to both the client company and Panama's body of shareholders as a whole
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