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The Key Difficulty for Third Partiin Legal Action Against Auditors

question 5

Essay

The key difficulty for third partiin 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 principlrelating to an auditor's duty of care to third partiwith reference to specific case law.


Definitions:

Neurological Trauma

Physical injury to the nervous system, which can result in temporary or permanent damage.

Short-Term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Causal Relationship

A connection between two events where one directly results in the other, indicating a cause-and-effect scenario.

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