Sarah Brown, an auditor, was engaged by Sloan Financial Services Ltd (Sloan) to audit its financial report. Sarah was inexperienced in the financial services industry and performed her audit examination in a negligent manner. As a result of her negligence, she failed to discover substantial embezzlement by Larry Hooper, Sloan's finance director, resulting in significant unrecoverable losses that were not recorded in the financial report. Sloan has sued Sarah Brown for negligence. REQUIRED Explain whether Sarah has a liability to Sloan?

Answer rating: 100% (QA)

Yes Sarah Brown has a liability to Sloan for her negligence As an auditor she owed a duty of care ... View the full answer