问题
问答题
Money Bank (‘the Bank’) received an application for a loan from a company (‘the Loan’). The company submitted a copy of the company’s annual report to the Bank to support the application. The report, which was an unqualified one, contained negligent misstatements by the auditors preparing the report. In reliance upon the report, the Bank granted the Loan to the company.Required:In relation to professional negligence:
(a) Advise the auditors as to whether they owed a duty of care to Money Bank. (5 marks)
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