Final answer:
The Caparo Industries plc v. Dickman case is the one that established a significant precedent for auditor liability to third parties under common law.
Step-by-step explanation:
The court case that set a precedent for increasing liability to 3rd parties arising from audits in accordance with common law is Caparo Industries plc v. Dickman. This landmark decision established the "Caparo test," which outlined a three-part approach to determine duty of care.
Specifically, it must be established that the damage was reasonably foreseeable, there is a relationship of proximity between the parties, and it is fair, just, and reasonable to impose liability.
This decision highlighted the changing views on the role of government and the evolving nature of corporate responsibility, reflecting a period where there was significant development in the legal landscape regarding the accountability of auditors and professionals towards third parties.