Parramatta City Square shopping centre has borrowed heavily in recent years. The pressure of rapid expansion has been felt within its finance department, and the Chief Financial Officer (CFO) has begun to make mistakes. The CFO neglected to reclassify some its debts from non-current liabilities to current liabilities following default on some terms of the contract with an international banking syndicate and, and omitted contingent liabilities from the notes to the accounts. The billion-dollar mistake was not detected by either the directors nor the auditors, and the financial report and audit report were published. Following discovery of the mistake, the shares in Parramatta City Square Shopping centre lost value rapidly and the company was placed on liquidation.

Required: Discuss the auditors liability for losses suffered by (a) Parramatta City Square Shopping Centre and (b) other parties (referring to Case Law)