Nine dragons ltd is a company trading in china

Assignment Help Business Law and Ethics

Reference no: EM13903765

Nine Dragons Ltd is a company trading in China. The company has appointed ER Sun, an auditing firm, at its auditor. Nine Dragons Ltd wishes to borrow $1 million dollars from Quick-Finance Ltd, a company trading in Australia. Before lending the money, the directors of Quick-Finance Ltd viewed the auditor's report of Nine Dragons Ltd posted at their web-site and which was prepared by ER Sun. Based on the positive financial information contained in that auditor's report, the directors of Quick-Finance Ltd were happy to lend the money to Nine Dragons Ltd. Six months after the loan was advanced. Nine Dragons Ltd experience financial difficulties and the company collapsed. The directors of Quick-Finance Ltd are shocked by these sudden events and are furious at the financial loss they are facing. They wish to sue ER Sun, the auditing firm, to recover their financial loss. Advise the directors of Quick-Finance Ltd of their chances of success in successfully suing ER Sun to recover the $1 million dollars loaned to Nine Dragons Ltd on the basis of the contents of the auditor's report which they viewed on the world wide web.

Reference no: EM13903765

Questions Cloud

What is the marginal product of the first worker : What is the marginal product of the first worker? What is the marginal revenue product of the first worker? Fill in the rest of the table. How many workers will this firm hire at a wage of $7

Compute the point elasticity : The demand for shirts produced by a canadian manufacturer has been estimated to be P=30-Q/200

Describe compliance issues associated with foreign corrupt : Describe compliance issues associated with the Foreign Corrupt Practices Act. For instance what if I am trying to do business in a country where it is "custom" to bribe officials in order to obtain the proper permits, etc. Can I follow the custom? ..

Computing the slope of the budget line : Mr mohamed's budget line relating to goods X and goods Y has intercepts of 50 units of goods X and 20 units of goods Y. If goods X is dollar 12

Nine dragons ltd is a company trading in china : Nine Dragons Ltd is a company trading in China. The company has appointed ER Sun, an auditing firm, at its auditor. Nine Dragons Ltd wishes to borrow $1 million dollars from Quick-Finance Ltd, a company trading in Australia. Before lending the money,..

Corporations law question : Corporations law question: Case Study 4 For the past five years Chu has been the New South Wales Operations Manager of Computers Pty Ltd, a company which retails computer software and hardware. Because of his senior position, Chu knows the identity a..

New south wales operations manager of computers : For the past five years Chu has been the New South Wales Operations Manager of Computers Pty Ltd, a company which retails computer software and hardware. Because of his senior position, Chu knows the identity and requirements of the company's major c..

How would analysis change if more than quality levelslemons : How would your analysis change if there are more than two quality levelslemons, intermediates, and good-quality cars? Explain your answer in detail.

Explore how organizations use business process management : Business Process Management In this writing assignment, you will explore how organizations use business process management (BPM). Write a one page(250-word) paper explaining how organizations use business process management (BPM). Be sure to use at l..

User Account

All Pages