Dubax Bhd. which is a finance company, lent money to a few companies after reviewing their audited accounts. The borrowers however were unable to meet their commitments and Dubax Bhd. therefore commenced an action against the auditors, claiming that they had been negligent in conducting the audit. The negligence of the auditors was the primary reason Dubax Bhd. suffered severe losses. Advise the auditors as to whether they are responsible for the losses suffered by Dubax Bhd. (13 marks)

Apply Caparo Industries v Dickman & Ors. according to the question