审计的合法义务（ppt40页演示教学.ppt

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1、审计的合法义务（PPT40页）LawsuitsAgainstAuditorsExpectationgapondetectionoffraudAuditorsuedincivilcourtBreachofcontractTortactionsfornegligenceCriminalChargesChangedLegalEnvironmentAuditprofessionalshavearesponsibilityundercommonlawtofulfillimpliedorexpressedcontractswithclients.Theyareliabletotheirclientsfo

2、rnegligenceand/orbreachofcontractshouldtheyfailtoprovidetheservicesornotexerciseduecareintheirperformance.BusinessFailure,AuditFailure,andAuditRiskBusinessFailureAuditFailureAuditRiskBusinessFailure,AuditFailure,andAuditRiskBusinessfailureItoccurswhenabusinessisunabletorepayitslendersormeettheexp

3、ectationsofitsinvestorsbecauseofeconomicorbusinessconditions.BusinessFailure,AuditFailure,andAuditRiskAuditfailureItoccurswhentheauditorissuesanerroneousauditopinionastheresultofanunderlyingfailuretocomplywiththerequirementsofgenerallyacceptedauditingstandards(GAAS).BusinessFailure,AuditFailure,a

4、ndAuditRiskAuditriskItrepresentstheriskthattheauditorwillconcludethatthefinancialstatementsarefairlystatedandanunqualifiedopinioncanbeissuedwhen,infact,theyaremateriallymisstated.LackofprivilegedcommunicationLiabilityfortheactsofothersPrudentpersonconceptLegalConceptsAffectingLiabilityFederalsecur

5、itieslawsThirdpartyClientMajorSourcesofAuditor’sLegalLiabilityCriminalliabilityLiabilitytoClientsThemostcommonsourceoflawsuitsagainstCPAsisfromclients.LegalTermsAffectingCPAs’LiabilityTermsrelatedtocontractlawBreachofcontractThirdpartybeneficiaryNegligenceTobeheldliable,theauditor’sworkmustbeshow

6、nasnegligent.Negligence(ordinary)isthelackofreasonablecare.Whatwouldaprudentauditordointhesamecircumstances.FollowingGAASisnotalwaysenoughreasonablecareGrossNegligenceisthelackofminimumcare.ConstructivefraudFraud-anintentionalacttodeceive.RelationshiptoSueforOrdinaryNegligencePrivity-partytoacontra

7、ctMusthaveprivitytosueforbreachofcontractContractbetweenauditorandclientThirdPartyBeneficiary(standing)InvestorsCreditorsStandingdependsonstatecommonlaw.ThirdPartyBeneficiary-StandingLimitedexposure–several