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Auditor Legal Liability

Chapter
Part of the Global Financial Markets series book series (GFM)

Abstract

Like other professionals such as physicians and architects, auditors are liable both civilly and criminally. Civilly, an auditor can be found liable either under the common law or a statutory law liability. Common law liability arises from negligence, breach of contract, and fraud. Statutory law liability is the obligation that comes from a certain statute or a law which is applied to society. The scope of both common law liability and statutory liability has been expanded to include certain third parties, mainly the foreseen or foreseeable users of audited financial statements. Also, a lawsuit in a state court provides greater protection than the one brought before the federal court.

Keywords

Audit Firm Fiduciary Duty Audit Financial Statement External Auditor Certified Public Accountant 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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Notes

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© Felix I. Lessambo 2014

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