In the Esanda Finance Corporation Ltd V Peat Hungerfords Case

question 86

Multiple Choice

In the Esanda Finance Corporation Ltd v Peat Hungerfords case, the court:

• A) confirmed the auditors' duties as stated in the Pacific Acceptance case.
• B) stated the auditors were aware of the intention of the third party's reliance on the audit report.
• C) stated auditors must undertake the audit with reasonable skill and care.
• D) all of the above

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Definitions:

Constant Mesh

Gears positioned to remain in permanent mesh, not engaged and disengaged by shifting action.

Sliding Clutch

Actuated by a shift yoke, used to engage a gear on a shaft. Also known as a dog clutch.

NPV

Net Present Value; a method used in capital budgeting to assess the profitability of a project or investment by calculating the difference between the present value of cash inflows and outflows.

CCA Rate

Stands for Capital Cost Allowance rate, which is a tax deduction in Canada that represents a business's investment in certain assets depreciating over time.