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nz negligent misstatementeconomic lossauditors

Scott Group Ltd v McFarlane

[1978] 1 NZLR 553
Jurisdictionnz
CourtCourt of Appeal of New Zealand
Year1978
StatusBinding authority

Key Principle

An auditor owes a duty of care in negligence to a third party (such as a takeover bidder) whom the auditor could reasonably foresee would rely on negligently certified company accounts, where the company's circumstances made such reliance a real and foreseeable possibility.

Area of Law

Tort

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