The case of Hercules Management Ltd. v. Ernst and Young (1997) makes the following contribution to the law regarding professional liability of accountants at common law:

A) accountants do not have a duty of care to the corporation.
B) accountants do not have a duty of care to the directors.
C) accountants do not have a duty of care to the shareholders.
D) accountants do not have a duty of care to the creditors
E) accountants have a duty of care to the corporation, directors, shareholders and creditors.

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Malack Jwayyed · Accepted Answer

Final Answer : C, Explanation :  The case established that accountants do not owe a duty of care to shareholders for the purpose of making personal investment decisions, as their duty is primarily to the corporation itself.

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