What must a claimant prove to establish a breach of duty of care?

• A. The claimant must prove the auditor did not act reasonably.
• B. The auditor failed to issue a report.
• C. The client incurred a loss regardless.
• D. The audit was conducted in the wrong quarter.

Answer: (A)

A breach of duty of care happens when the auditor fails to meet the standard of care expected of a reasonably competent auditor in the circumstances. To establish this breach, the claimant must show that the auditor did not act reasonably. If the auditor’s conduct met the expected standard of care, there is no breach, even if the client later suffers a loss. Simply proving a loss, or that a report was not issued, or that the audit occurred in a different quarter, does not by itself establish a breach of duty; those factors may be relevant to damages or other issues, but they don’t define a breach of the required standard of care.