• Explain The Impact Of Key Court Cases On The Public Accounting Profession.

Part I: Understanding Auditor Responsibilities
Chapter 4
Professional Liability

Learning Objectives:

By studying this chapter, students should be able to:

1. Discuss the liability environment in which auditors operate, the factors that have led to litigation against auditors, increasingly including shareholder class actions, and the effects of lawsuits on audit firms.

2. Describe the causes of legal action against auditors and identify parties that may sue auditors.

3. Explain the impact of key court cases on the public accounting profession.

4. Describe auditor liability, discuss auditor responsibilities, identify possible auditor defences, and discuss possible remedies and sanctions available under both common law and statutory law.

5.
|Pp 114-118 | | | | |
|LO 2 |4-3 | |4-31, 4-32, 4-35, 4-39 |4-40, 4-42 |
|Pp 118-119 | | | | |
|LO 3 |4-8, 4-17, 4-18 | |4-28, 4-35, 4-39 | |
|Pp 119-120 | | | | |
|LO 4 |4-2, 4-4, 4-5, 4-6, 4-7, 4-9, |4-2, 4-3, |4-27, 4-28, 4-29, 4-30, 4-31, 4-32, |4-40, 4-41 |
|Pp 120-130 |4-10, 4-11, |4-4, 4-5, |4-33, 4-34, 4-35, 4-36, 4-39 | |
| |4-12, 4-13, 4-16 |4-6, 4-7, 4-8, 4-9, | |