What does a third-party user of financial statements have to prove under common law in a suit against an auditor for the auditor's negligence?

What are the concepts of legal responsibility applicable to the accountant in his audit functions and other related services? and mention five (5) recommendations so that the auditor can prevent or protect himself from his legal responsibility.

If either party fails to perform their contractual obligations according to the contract terms, it will usually result in a breach of contract. The scope and nature of an auditor's contractual obligation to a client ordinarily is established in the:  Select one: a. Corporations Act 2001. b. Management letter. c. Client’s constitution. d. Engagement letter.

A number of cases have considered the auditor’s liability in relation to persons other than the immediate client. Even so, the AWA case established that:    Select one: a. Duty of care and skill means following the accounting standards b.auditors have a contractual duty to oversee and review the work of inexperienced audit staff c.Auditors are only liable for the proportion of damages attributable to their actions d.Auditors have a duty of care only to the shareholders.