Mars Ltd Wished to Acquire the Ordinary Shares of Saturn

question 4

Multiple Choice

Mars Ltd wished to acquire the ordinary shares of Saturn Ltd and engaged Sarah & Co. to audit the financial report of Saturn Ltd. Sarah & Co. failed to discover a significant liability when performing the audit. In a common law action
Against Sarah & Co., Mars Ltd, at a minimum, must prove:

• A) negligence on the part of Sarah & Co.
• B) fraud on the part of Sarah & Co.
• C) that Sarah & Co. knew that the liability existed.
• D) All of the given answers are correct.

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