Question 3 (7 marks)

An investor or creditor believes that they have suffered harm due to the unexpected the bankruptcy of a large corporation:

Required:

Can that investor or creditor sue the auditor of the large corporation under contract law? Explain.

If the investor or creditor chooses to sue the auditor of the large corporation under tort law, what must they prove before their claim can succeed?

How can the auditor contest a claim of negligence?