Question 1 (Feb 2022) Hannah is a member of a small group that is going to participate in a private placement of RM10 million ordinary shares of Kejayaan Bhd. Numerous meetings were held between the management of Kejayaan Bhd and the group of potential investors, and detailed financial and other information was supplied to them. However, the placement was aborted when one of the major potential investors withdrew to participate. Due to that, Kejayaan Bhd offered RM10 million ordinary shares to the public, which Hannah subscribed for RM1 million of the total amount. Ten months later, Kejayaan Bhd's earnings dropped significantly, and as a result, the share value dropped 30% below the offer price. Hannah sold her shares at a loss of RM1 million and seeks to hold all parties who participated in the public offering liable, including Kejayaan Bhd's auditor, Aziz & Co. Although the audit was performed in accordance with the Malaysian Approved Auditing Standards, there were some minor misstatements. The financial statements unfortunately also contained several misleading facts. Hannah's claim had no basis, according to Kejayaan Bhd and the auditor. Required: a. Explain the basis of her claim, if Hannah sues Kejayaan Bhd and the auditors. b. Explain the probable defences that might be asserted by Aziz & Co. (2 marks) (3 marks) c. Explain what Hannah has to prove to be able to recover her loss from the auditor. (4 marks)