BA 3340 Lecture Notes - Lecture 99: External Occipital Protuberance, Franchising, Beneficial Ownership
Document Summary
The information or advice would be communicated for a purpose that would very likely lead the third party to enter into some transaction. It would be very likely the third party entered into such a transaction in reliance on the information or advice from the adviser and so risk incurring economic loss if the advice is untrue or unsound. Case: esanda finance corporation ltd v peat marwick hungerford. The auditing process involves more than the statement of verifiable fact. Instead it is a complex process involving the formulation of professional opinion . So far as concerns negligent misstatement, the circumstances which attract a duty of care have been identified as known reliance (or dependence) or the assumption of responsibility or a combination of the two". Remoteness (s 5d(1)(b) + relevant cases: then necessary to consider any defenses, quantum. Despite section heading in act, does not impose a standard of care" on professionals.
