(a) Explain the category of persons to whom an auditor owes a duty of care in the preparation of his audit report.

(b) Enumerate the rights accorded to an auditor to enable him perform his duties as the auditor of a company.
(c) In Hedley Byrne V. Heller (1964) the court held that provided that it could be established that a special relationship existed between parties it was possible for a person to sue for having suffered a financial loss even though no contractual relationship existed between the parties.

Highlight the factors that should be established in order for a third party to successfully sue an auditor for professional negligence. (8 marks)

 

 

 

 

 

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