Question 6 Appear Ltd is experiencing financial difficulties due to the recent COVID -19 trading problems and urgently needs an injection of capital. Maria is prepared to invest but when advised that she should commission her own audit of the company's financial position she makes it clear that she is going to rely on the company's annual audited accounts which are due to be presented to Appear Ltd's board of directors for approval. Maria makes it clear that unless she receives the written assurance of Norman, Appear Ltd's chairperson, that the annual accounts are reliable she will not proceed with her investment. In urgent need of Maria's money Norman provides the written assurance and then forces Beg, Borrow and Steele LLP the company's auditors, to certify that the accounts are true and fair and require no qualification. Norman explains that the company will be unable to trade on without the investment of Maria and that Beg, Borrow and Steele LLP will thus lose lucrative business should it prove reluctant to help. Beg, Borrow and Steele LLP certifies that the accounts present a true and fair view of Appear Ltd's financial position. Six months later, with the financial recession deepening, Appear Ltd becomes insolvent and Maria's investment is lost. It is obvious that the auditor's certification of the accounts was wildly optimistic. Requirement Advise Maria whether she has any claim for damages against Beg, Borrow and Steele LLP. In your answer you should clearly set out the reasoning behind your conclusions. Total 25 Marks