Zong & Dansse LLP, the auditors to Daffodil Ltd, gave an unqualified report on 14 January 202X on the accounts for the year ending 30 November 202W. These accounts were seen by The Wednesfield Bank plc in February 202X and the bank lent £250,000 to Daffodil on short-term overdraft on 19 March 202X. In March 202Y the company went into liquidation still owing the bank £200,000. The company was hopelessly insolvent and the bank recovered nothing. It turned out that the accounts for the year ended 30 November 202X were defective in that several substantial payables were omitted from the accounts. Had these payables been included it would have been apparent that Daffodil was not a going concern in November 202X.

Discussion
– Can the bank recover from Zong & Dansse?