Pangus is a wealthy investor residing in Vancouver. He is looking for new start-up businesses to invest in. Pineapple Vision Inc. recently developed a new software for produce companies to purchase fruit stock for their produce business. Pangus is very interested in the business and would like to invest $1 million dollars into it. Before he invests into the business, he hires the accounting firm, Michael Rocks Accounting Inc. to review the financial documents of the Pineapple Vision Inc., and deliver to Pangus a detailed report on the financial projections of the Company.

Answer the following Questions:a)Does Michael Rocks Accounting owe a duty of care to Pangus? Explain. (2 Marks)

b)Assuming there is a duty of care, what is thestandard of care requiredfor Michael Rocks Accounting Inc., when delivering the financial projections to Pangus? Please fully explain the law on this point (1.5 Marks)

c)Assume that the financial projections included a statement from Michael Rocks Accounting that theCompany is not a good financial state and provides reasonable information to Pangus that he should not invest and if there is any loss then there will be no liability on Michael Rocks Accounting.Pangus reads and understands this and still invests into the Company. He suffers a major financial loss. Can he successfully sue Michael Rocks Accounting for this?Why? (1.5 Marks)