Distinguish between the legal concepts of actually foreseen third-party users and reasonably foreseeable third-party users. How does each concept establish a basis for an auditor’s legal liability to third parties?

Q: Explain the auditor legal liability, this includes what law that procure such liability?

A: An auditor is expected to complete their tasks in good faith and with integrity and should operate…

Q: What is a law, such as the Sarbanes–Oxley Act of 2002, under which auditors have obligations?

A: The Sarbanes–Oxley Act of 2002 is a federal Law that established Sweeping Auditing and finance…

Q: Compare and contrast traditional auditors’ legal responsibilitiesto clients and third-party users…

A: An Audit is the process of collection of information & data, assess them & identifies the…

Q: Which of the following statements is most likely to be included in an attorney letter?a. “Certain…

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Q: For what type of actions can clients bring suit against auditors under common law? What must…

A: Given: The clients can bring suit against auditors for breach of contract under common liability…

Q: The primary reason auditors request responses to attorney letters is to provide auditorsa. The…

A: An attorney’s letter refers to a legal document that gives someone the authority to act for someone…

Q: What is the primary duty of an auditor?

A: Primary duty of an auditor: Primary duty of an auditor is to express an opinion on the financial…

Q: Distinguish between an auditor’s responsibilities to detect and report errors, illegal acts, and…

A: Definition: Auditor: Auditor is an accounting professional hired by a company to review the…

Q: Why is it necessary to pre-number reports received? In what way might an auditor examine a claim…

A: For natural language processing, the use of Dialogue Systems :

Q: What is the auditor's obligation in light of the prudent person concept?

A: An auditor is a person who reviews the financial statements of a company and gives his opinion. The…

Q: What is Legal Liability of Auditors?

A: Concerns about the legal obligation of auditors continue to grow daily. Auditors are very important…

Q: what are the key practical differences between  common-law liability and statutory liability for…

A: Judges' legal decisions in determining cases give emergence to common law liability. These decisions…

Q: Distinguish between common-law liability and statutory liability for auditors. What is the basis for…

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Q: One of the uses of audit working papers is to prove the independence of the auditor.  TRUE OR…

A: Audit should prepare audit documentation which provides that audit was performed in accordance with…

Q: What are some of the advantages and disadvantages of permitting auditors to provide nonaudit…

A: Advantages to provide non-audit services to the clients are listed as follows: Facilitation in…

Q: Under common law, when performing an audit, a CPA:

A: CPA stands for Certified Public Accountant.       A CPA is a trusted financial advisor who helps…

Q: Understand recent developments that affect auditors’ liability to clients and third parties.

A: An auditor’s legal liability or responsibility is to offer customer’s an inexpensive assurance that…

Q: How does the prudent person concept affect the liability of the auditor?

A: Prudence is one of the accounting principle, which says that all anticipated losses should be…

Q: What are the concepts of legal responsibility applicable to the accountant in his audit functions…

A: Legal Responsibility of Auditor: Every day, more and more people are becoming concerned about the…

Q: In your words, what is the legal responsibility of the auditor?

A: Auditors are the authorized individual to examine the financials or accounts of the companies and…

Q: How would an auditor communicate  known there are violations of the law and the auditor's…

A: Audit is the process in which auditor independently examined the financial information of any type…

Q: A CPA accumulates various types of evidence on which to base the opinion on financial statements.…

A: Audit Confirmation:   Audit confirmation is the procedure of obtaining the information from the…

Q: Why should receiving reports be prenumbered? What assertion would an auditor test using thereceiving…

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Q: Explain auditors’ responsibilities with respect to a client’s failure to comply with laws or…

A: Auditor’s  report: Auditor’s report can be defined as a formal document prepared by an auditor in…

Q: What is the importance for auditors to exercise a reasonable care and skill in the performance of…

A: Operational efficiency and effectiveness can be improved through performance audits and operational…

Q: The scope of an audit is not restricted when an attorney letter limits the response toa. Matters to…

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Q: How will you explain the different types of audit opinion (e.g., Unqualified, Qualified, Adverse,…

A: Audit opinion refers to the opinion given by the auditor of the entity on examination of the…

Q: Generally, the auditor could be legally liable under?

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: What defenses are available to auditors against suits brought by clients under common law? Against…

A: Under common law, clients can bring suits against the auditors and there are various defenses…

Q: The auditor's dependents (whether related or not) are part of the auditor's

A: Auditor's Responsibility: The independent auditor's role is to provide an opinion on the financial…

Q: What are the requirements from Sarbanes-Oxley regarding using the same auditor

A: Audit is an independent examination of financial information of any entity, whether profit…

Q: Distinguish between common-law liability and statutory liability for auditors. What is the basis for…

A: Difference b/w common law liability and statutory law liability Common law liability: It arises from…

Q: What is the auditors responsibility regarding the noncompliance with laws by a client?

A: Audit:   It is an inspection of the financial statements of the company. It is mandatory for every…

Q: Can a CPA auditor be independent without being objective? Can a CPA auditor be objective without…

A: The given question deals with STANDARD AUDIT SA 1100 - INDEPENDENCE AND OBJECTIVITY…

Q: What kind of actions might customers pursue against auditors under the common law doctrine of…

A: Given: Per common liability law, customers may file a lawsuit against auditors for breach of…

Q: O The determination of how to audit and review a client's subsequent events is a subjective one. The…

A: Subsequent events refers to an event that occurred between the reporting period and the date of…

Q: What are the implications of the cautious person notion for the auditor's legal responsibility?

A: This question explains about the implications of the cautious person notion for the auditor's legal…