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Q-3 Golden Dragon Ltd is a company trading in China. It appointed Abacus, an auditing firm, at its auditor. Golden Dragon wishes to borrow $1

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Q-3 Golden Dragon Ltd is a company trading in China. It appointed Abacus, an auditing firm, at its auditor. Golden Dragon wishes to borrow $1 million dollars from Easy-Finance Lid, a company trading in Australia. Before lending the money, the directors of Easy-Finance Ltd viewed the auditor's report of Golden Dragon Ltd posted at their web-site and which was prepared by Abacus. Based on the positive financial information contained in that auditor's report, the directors of Easy-Finance Ltd were happy to lend the money to Golden Dragon Ltd. Six months later, Golden Dragon Lid had financial difficulties and the company collapsed. The directors of Easy-Finance Ltd are shocked by these sudden events and are furious at the financial loss the co is facing. They wish to sue Abacus, the auditing firm, to recover their financial loss. Advise the directors of Easy-Finance Ltd of their chances of success in successfully suing Abacus [to recover the $1 million dollars loaned to Golden Dragon Ltd] with reference to relevant precedent

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