The judgement in the Caparo case decreed no auditor liability to a third party because:

Name: The judgement in the Caparo case decreed no auditor liability to a third party because:
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Question

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The Caparo case established the three-part test for establishing a duty of care in negligence cases. While the auditors may have owed a duty of care to the company they were auditing, they did not owe a duty of care to the third party claiming damages. As a result, there was no liability to the third party.

The Judgement in the Caparo Case Decreed No Auditor Liability