Question 2: (5 Marks) Su Zhou Ltd's financial statements for the year ended 30 June 2021 were audited by Meiting and Partners. The unqualified auditor's report was published alongside the directors' statements on 20 August 2021. Hang Zhou, a tycoon in the publishing industry, put forward a bid to take over Su Zhou at $2.50 per share, based on the net asset value of the audited accounts (which also showed a net profit for the year of $18 million). The takeover was finalised on 30 September 2021. In October it was leaked to the press that the financial statements of Su Zhou had excluded a significant legal liability on a case, for a claim of $5 million. The case was being appealed by Su Zhou in June 2021. The outcome of the damages claim caused the company's share price to plummet. Hang Zhou was extremely annoyed, partly because he had examined the accounts but overlooked the lawsuit. He decided to sue Meiting for negligence and compensation for not including an estimate for the likely damages. Required: Analyse Meiting's legal liability and the likelihood that Hang Zhou may succeed in the action