Seeking some clarity on how the court applies negligence to an auditor/accountant…..is it the general rule that auditors/accountant are not considered to be negligent in a case where reports are used for investment, bidding, and or purchasing of a company?
1. If not, what is the general rule? if there is one. 2. If that’s the general rule what are the exceptions if any?
That IS the general rule. The exception is where the auditor KNEW that their report was to be used for that purpose or the auditor was in a contractual relationship with a prospective investor (unlikely)