Question 1:

To determine whether or not a duty of care can be established, it is necessary to fulfill both the requirements in the Civil Liability Act and relevant cases. This case falls under professional negligent misstatement and therefore a reasonable foreseeability test as required under case Law and the Act should be applied.

To examine whether a duty of care exists, one should firstly apply the Act . Considering that the advice was given as part of an audit for the end of the financial year, and an unqualified audit was issued, there can be no doubt that: the audit was performed in a professional setting, and Peter Leigh & Associates could reasonably foresee the risks in performing the audit negligently. Leigh and Associates did not follow Auditing standards , as the files received by them were never looked at, much less was any effort made to obtain “reasonable assurance.”

Using the Act alone, however, is not sufficient to establish a duty of care......

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Title: Duty Of Care
Approximate Word Count: 1475
Approximate Pages: 6 (250 words per double-spaced page)

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