Management and Organizational Studies 2275A/B Chapter Notes - Chapter 22: Ernst & Young, Financial Statement, Fiduciary
5 Dec 2015
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Hiring professionals in-house if cost of external professional services becomes significant, business will have to consider costs of hiring an experienced, in-house professional. Responsibility of professionals to clients and others who rely on their work. Responsibility in tort: professional and client must comply with terms of contract negotiated, general responsibility duties in tort equivalent to those of other service providers. Generally negligence is most common basic elements of negligence must be proven: Professional owes claimant a duty of care, has breached standard of care, the conduct has caused claimant"s losses, and loss is not too remote. Negligent misrepresentation recipient must have relied on misrepresentation and able to show damages: responsibility to third parties generally have had no claim to keep economic viability of professions. Buyer of contaminated land can sue vendor. Canada courts found auditors owed a duty of care where they had actual knowledge of the limited group that would use and rely on their statements.
