The auditors of Dunce Ltd signed the balance sheet of the company, which grossly overstated the value of the stockin-trade, at the end of each year. The auditors had relied, without further enquiry, on certificates regarding the value of the stock-in-trade which were issued by the company secretary. The company has now gone into liquidation and it is clear that the company has no assets to pay its creditors. Empire Bank Ltd alleges that it relied on Dunce Ltd’s financial statements for increasing the overdraft facilities to it. The auditors are now being sued by Empire Bank to make good the loss it has suffered for not being able to recover the money advanced to Dunce Ltd.Required:Advise the auditors on their potential liability for professional negligence. (10 marks)