You have been a partner of Jones and Jones Associates for many years and have just obtained a client, T & J Manufacturing Ltd. As part of accepting the client you conduct a background check and found out that the auditor' s report of T & J Manufacturing Ltd for two years ago, was unqualified; deemed true and fair. Moreover, T & J Manufacturing Ltd had applied for a large loan to provide additional working capital from BB bank Ltd. However, the company continued to experience severe trading problems. It was discovered that issues of inadequate allowance for doubtful debt, wrong ratios and fall in the value of inventory have all contributed to the failure of T & J Manufacturing Ltd. BB bank Ltd successfully, took legal action against previous auditor. Subsequently, the previous auditor has confirmed the incident. Jones and Jones, considering the risk involved has asked you to put together, a strategy to minimise your firm's risk. 

Required: 

a. Examine the factors that should appropriately be considered for a successful legal claim against an auditor. 

b. Discuss the reliefs available to minimise your firm's liability.