Ahmad & Partners is a public accounting firm in eastern Canada. Last year it audited Chan Corporation, a publicly traded company that manufactures automobile component parts. Although the company has been profitable for many years, Ahmad & Partners was hired by Canada Bank, which was considering extending a large loan to Chan Corp. The bank wanted the audit because Chan’s expansion plans would change the company’s financial structure significantly from the previous year. Ahmad & Partners conducted the audit and gave an unmodified opinion. Xing Investments Inc. purchased $750,000 of the common stock of Chan, intending to hold the stock as a long-term investment. Unfortunately, Chan went bankrupt shortly after the share purchase and Xing Investments lost all of its $750,000 investment. Canada Bank was unable to recover any of its loan to the company. Xing Investments and Canada Bank subsequently sued Ahmad & Partners to recover their losses. 

Required 

(a) Did Ahmad & Partners owe a duty of care to Xing Investments? 

(b) What are some of the arguments Ahmad & Partners could make in their defence?