Auditor's Legal Liability and Responsibilities

What is the comparative level of assurance provided by the auditor?

• High, but not absolute, assurance

• Positive assurance on assertion(s)

• Moderate assurance

• Negative assurance on assertions(s)

• No assurance

What are the legal liabilities of audit professionals under common law?

What constitutes a business failure?

What is audit risk?

What is the prudent person concept in auditing?

What are the four major sources of auditors' legal liability?

What is the defense of lack of duty in liability to clients?

What does nonnegligent performance mean in the context of liability?

What is contributory negligence in auditing?

What is the absence of causal connection in liability cases?