What is the auditor's role when a client fails to follow the law?

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: sufficient care and skill in carrying out their audit might lead to legal action by those who claim…

A: Auditing refers to the process when an accounting professional collects and rechecks all the…

Q: Why must auditors distinguish between fraud committed by employees and management?  Are auditors…

A: It is one of the auditor's responsibility to obtain reasonable assurance that the financial…

Q: Who can sue the auditor? how they can sue the auditor. Explain.

A: An auditor is a person or an entity (if the auditor is a firm), who is authorized and assigned/hired…

Q: Auditors may be held liable to both their clients and third parties under common law. a. What must…

A: An auditor has an obligation to their clients and third part to exercise due professional care.…

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: action which can be taken by SAICA against the external auditor if he/she applied negligence in…

A: The action that can be taken by SAICA ( South African Institute of Chartered Accountants) against…

Q: How does auditors’ liability under statutory law arise?

A:

Q: Why is it important for auditors to consider the possibility of fraud by employees or management on…

A: There is a possibility of the occurrence of fraud by the employees or management of the company.…

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: Auditors must consider the possibility of fraud by employees or management on every audit…

A: Fraud: When someone intentionally uses false or misleading information in an effort to fraudulently…

Q: What is Legal Liability of Auditors?

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

Q: Cite any example of an accounting fraud.What actions were taken by the authorities after that?

A: Accounting fraud: It is basically manipulating the financial statements intentionally in order to…

Q: Who are covered by the anti-bribery provisions?  Who are covered by the accounting provisions?

A: The Foreign Corrupt Practices Act of 1977 (FCPA) is a United States federal law  known primarily for…

Q: What type of opinion is issued by the auditorr if he or she is unable to determine the overall…

A: Introduction: The act of examining, confirming, and analyzing all financial information and papers…

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: What is an auditor’s primary method to corroborate information on litigation, claims,…

A:

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 rights and duties of the CPA?  What obligation does the CPA have to a user of the…

A: Duties of CPA: Auditing and maintaining the financial records of the company Creating and Analyzing…

Q: A number of cases have considered the auditor’s liability in relation to persons other than the…

A: Generally, it is considered that the auditor's liability in relation to person other than the…

Q: What is the auditor's role in reporting violations of the Corporations Act under the Corporations…

A: Act on Corporations: One of the characteristics of Australia's commonwealth is the Corporations Act…

Q: What elements does a plaintiff have to prove to be successful in a case against a negligent…

A: In the case of negligence if the plaintiff wants to sue the defendant for damages incurred…

Q: What are the consequences for a CPA who commits an Act Discreditable?

A: Discreditable: As per the code of conduct, a member will not perform an act discreditable i.e. an…

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: Other than technical knowledge of accounting standards, etc., what other skills are critical for…

A: There are many skills critical for forensic accounting and fraud examinations

Q: what are the auditor Rules for Independence regarding the services they can offer the same client?

A: Auditing is the process of evaluation of companies' financial statements and reports by the auditor…

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: What types of actions may an auditor be liable to a client under common law? Why would the clients…

A: Auditor liability is becoming more of a concern, not just in terms of audit quality and the…

Q: How does an auditor’s commitment to the firm, the profession, and to colleagues influence whether…

A: An auditor is influenced by various factors which have a direct impact on the reporting quality with…

Q: What type of opinion is issued by the auditor if he or she is unable to determine the overall…

A: Introduction: The process of checking, validating, and conducting an investigation of all financial…

Q: What are some civil and criminal consequences if CPAs/auditors fail to follow professional…

A: The CPA may be held liable to financial users for any fraud and/or intentional deceit committed. Any…

Q: What tyype of opinion is issued by the auditor if he or she is unable to determine the overall…

A: Introduction: In an audit report, an auditor's opinion is conveyed. An initial portion of the audit…

Q: Distinguish between the legal concepts of actually foreseen third-party users and reasonably…

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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: Describe the action that an auditor should take if an attorney refuses to give information that is…

A: In general, an auditor is a person or organization employed by a business to conduct or oversee an…

Q: Explain the auditor’s responsibility to consider compliance with laws and regulations. How does this…

A: As per IAS 250, Consideration of laws and regulations in an audit of financial statement. Auditor is…

Q: ethical or unethical) on the following computations of the auditor's fee:

A: [Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: How does a qualified opinion by an auditor differ from an unqualified opinion or an adverse opinion?

A: A qualified opinion is a statement which is issued in the auditor’s report along with the financial…

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…