In the Case of Haig V

question 10

Multiple Choice

In the case of Haig v.Bamford,(1976) 72 D.L.R.(3d) 68 S.C.C.,the Supreme Court found the defendants (auditors) owed a duty of care to third-party claimants.Why did the court break away from its traditional approach of refusing all third-party claims for professional negligence in this particular instance?

• A) the limited purposes of the audited financial statements as set out in legislation
• B) public policy pressure following auditors' role in facilitating white collar crimes
• C) auditor's actual knowledge of limited third-party group and their intended reliance
• D) to assist the collectivity of the public in their task to oversee professional activity

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Definitions:

Accumulated Amount

The total amount accumulated over time, considering various factors like initial principal and compound interest.

Compounded Monthly

The process of adding interest to the principal sum of a deposit or loan on a monthly basis, leading to interest earning interest.

Intercompany Loan

A loan made from one business entity to another within the same organization, often used for internal financing purposes.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company.