Goode & Trusty LLP offers a range of audit and other assurance services to its clients. One of its audit clients was Speedwell Ltd, which operated a commercial haulage company. Speedwell Ltd had been an audit client for the previous ten years. The company was NI based but was planning a significant expansion of its operations into Europe. In order to finance the planned expansion, Speedwell Ltd needed funds to purchase additional heavy goods vehicles, expand its warehousing facilities and recruit more drivers. The company was also planning a major advertising and marketing campaign targeted at potential customers in Europe. Speedwell Ltds finance director, Flora Carton, approached Goode & Trusty LLP to ask if it would provide a report on the prospective financial information in support of a loan application. The application was for a new long term loan of 22 million from the companys current lender Belfast Bank, which it intended to use exclusively to finance the planned expansion. Goode & Trusty LLP provided the requested report. (Speedwell Ltd already had an existing long term loan of 31 million from the same bank which was redeemable in 2025). The new loan was granted in May 2018 but due to concerns over Brexit the planned expansion did not materialize and the company has since gone into liquidation in December 2018.

Consider the above scenario in respect of the duties owed by an auditor under UK Company Law