Report Assignment
Length: 1200 words.
o To what extent may auditors be held liable to compensate those who have suffered financial loss as a result of their negligent advice?
D, E and F are partners in DEF and CO, a firm of accountants which acts as the auditor of Fox Ltd. N, a minority shareholder in Fox Ltd, wrote to D ‘in confidential', asking if he could rely on DEF and Co's audit report for the accounting period ended 31 July 2021, as he was considering making a take-over bid for the entire share capital of Fox. D sent a letter to N stating that the report could indeed be relied upon by N, but pointed out that DEF and Co's would not accept any responsibility for financial loss caused by the reliance of any person on statements contained in the report'.
N subsequently acquired the share capital of Fox Ltd, but now considers that he has paid far too much for the shares as a result of relying on statements within the audit report which have proved to be inaccurate.
The report should cover the attached powerpoint from slide 2 - 12 (no copying from it)
o What extent may auditors be held liable to compensate those who have suffered financial loss as a result of their negligent advice?
D, E and F are partners in DEF and CO, a firm of accountants which acts as the auditor of Fox Ltd. N, a minority shareholder in Fox Ltd, wrote to D ‘in confidential', asking if he could rely on DEF and Co's audit report for the accounting period ended 31 July 2021, as he was considering making a take-over bid for the entire share capital of Fox. D sent a letter to N stating that the report could indeed be relied upon by N, but pointed out that DEF and Co's would not accept any responsibility for financial loss caused by the reliance of any person on statements contained in the report'.
N subsequently acquired the share capital of Fox Ltd, but now considers that he has paid far too much for the shares as a result of relying on statements within the audit report which have proved to be inaccurate
Format your assignment according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.