Which TWO of the following parties does an auditor owe a duty of care to when auditing the accounts of a subsidiary company?
(1) The parent company
(2) The shareholders of the parent company
(3) The subsidiary company
(4) A rival company considering a takeover of the subsidiary company
Following the Caparo decision, the auditors do not owe a duty of care to the shareholders of theparent company. There is no special relationship with the rival company, so no duty of care is owedto that. Following the cases of Barings plc and Cooper & Lybrand 1997 and BCCI (Overseas) Ltd vErnst & Whinney 1997, the auditors of a subsidiary company owe a duty of the care to both theparent and subsidiary companies.
多做几道
Which of the following is a remedy available under the civil law?
All criminal law cases begin in which of the following courts?
The Queen's Bench, Family and Chancery are all division of which court?
Which of the following statements concerning cases brought before a Magistrate's Courts is correct?
Which of the following offences would only be heard at a Magistrate's Court?
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