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The Key Difficulty for Third Parties in Legal Action Against

question 16

Essay

The key difficulty for third parties in legal action against auditors has been establishing that a duty of care was owed to them by their auditor.Explain the development of the relevant legal principles relating to an auditor's duty of care to third parties with reference to specific case law.


Definitions:

Production Standards

Quantitative indicators set by companies to measure the quality and rate of output over a specific period.

Strike

A work stoppage caused by the mass refusal of employees to work, typically to protest against terms of employment or working conditions.

Picket Lines

A boundary established by workers on strike, especially at the entrance to the place of work, meant to show unity and to discourage others from entering the premises.

Unfair Labor Practices

Actions by employers or unions that violate the rights of employees or union members, as defined by labor laws and regulations.

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