【7A文】审计资料--审计的合法义务.ppt

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1、LegalLiabilityChapter5$2BillionpaidinS&LLawsuitsErnst&Young1992$400millionDeloitte&Touche1994$312millionKPMG1994$187millionArthurAndersen1993$82millionLawsuitsAgainstAuditorsExpectationgapondetectionoffraudAuditorsuedincivilcourtBreachofcontractTortact

2、ionsfornegligenceCriminalChargesChangedLegalEnvironmentAuditprofessionalshavearesponsibilityundercommonlawtofulfillimpliedorexpressedcontractswithclients.Theyareliabletotheirclientsfornegligenceand/orbreachofcontractshouldtheyfailtoprovidetheservicesor

3、notexerciseduecareintheirperformance.BusinessFailure,AuditFailure,andAuditRiskBusinessFailureAuditFailureAuditRiskBusinessFailure,AuditFailure,andAuditRiskBusinessfailureItoccurswhenabusinessisunabletorepayitslendersormeettheexpectationsofitsinvestor

4、sbecauseofeconomicorbusinessconditions.BusinessFailure,AuditFailure,andAuditRiskAuditfailureItoccurswhentheauditorissuesanerroneousauditopinionastheresultofanunderlyingfailuretocomplywiththerequirementsofgenerallyacceptedauditingstandards(GAAS).Busine

5、ssFailure,AuditFailure,andAuditRiskAuditriskItrepresentstheriskthattheauditorwillconcludethatthefinancialstatementsarefairlystatedandanunqualifiedopinioncanbeissuedwhen,infact,theyaremateriallymisstated.LackofprivilegedcommunicationLiabilityfortheacts

6、ofothersPrudentpersonconceptLegalConceptsAffectingLiabilityFederalsecuritieslawsThirdpartyClientMajorSourcesofAuditor’sLegalLiabilityCriminalliabilityLiabilitytoClientsThemostcommonsourceoflawsuitsagainstCPAsisfromclients.LegalTermsAffectingCPAs’Lia

7、bilityTermsrelatedtocontractlawBreachofcontractThirdpartybeneficiaryNegligenceTobeheldliable,theauditor’sworkmustbeshownasnegligent.Negligence(ordinary)isthelackofreasonablecare.Whatwouldaprudentauditordointhesamecircumstances.FollowingGAASisnotalwayse

8、noughreasonablecareGrossNegligenceisthelackofminimumcare.ConstructivefraudFraud-anintentionalacttodeceive.RelationshiptoSueforOrdinaryNegligencePrivity-partytoacontractMusthaveprivitytosueforbreachofcontractContractbetweenauditorandclie