Identify the categories of parties who may institute successful legal claims against an auditor emphasizing the basis a court of law would use to assess the value of damages

The company‘s Act recognizes the auditors responsibilities to: –
i) His client whom he owes a primary duty of care. ii)To third parties under tort of negligence.
iii) Government under criminal law.
Under the law of contract, only persons in a contractual relationship with the auditor can sue
i.e. the client company.
NB:- Individual Shareholders do not have a contract with the auditor hence they cannot sue in contract.

In the tort of negligence, the plaintiff i.e. the third party must prove that:-

a) The defendant (i.e. auditor) owes a duty of care.
b) The defendant has breached the appropriate standard of care i.e. has been negligent
c) The plaintiff has suffered a financial loss as a direct result of the defendants breach

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