auditing: duty of care

Project Description:

b&y partners (by) is an audit firm located in hamilton ontario. last year it audited dfi inca publicly traded company. although the company has been profitable for many years, b&y was hired by major creditor who was considering extending a large loan to dfi.
b&y conducted the audit and gave an unmodified opinion, dated february 1, 2015.
a group of former employees purchased $750,000 of the common stock of b&y in 2014, intending to hold the stock as a long-term investment. unfortunately, dfi went bankrupt in 2015.dfi had a large customer that also purchased goods from dfi throughout all of 2014.

1) explain, with reason, the parties the auditor owes a duty of care to if any.
2) identify 4 reasons how auditors can limit their liability in performing an audit of financial statements?
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Project Stats:

Price Type: Fixed

Project Budget: $0 to $10
Total Proposals: 12
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