legalliability(英文版)(ppt40頁)-wenkub
2023-01-30 08:32:46 本頁面
【正文】 e held liable, the auditor’s work must be shown as negligent. ? Negligence (ordinary) is the lack of reasonable care. ? What would a prudent auditor do in the same circumstances. ? Following GAAS is not always enough reasonable care ? Gross Negligence is the lack of minimum care. ? Constructive fraud ? Fraud an intentional act to deceive. 5 14 Relationship to Sue for Ordinary Negligence ? Privity party to a contract ? Must have privity to sue for breach of contract ? Contract between auditor and client ? Third Party Beneficiary (standing) ? Investors ? Creditors ? Standing depends on state mon law. 5 15 Third Party Beneficiary Standing 1. Limited exposure – several states ? Only liable if the third party was specifically known to the auditor and that the third party would be relying on the F/S 2. Restatement of Torts – majority of states ? Liable to foreseen third party users 3. Reasonably Foreseeable Users – Wisconsin and Mississippi ? Almost unlimited liability to any possible users of the F/S. 5 16 Liability and Standing ? Gross negligence and fraud are a basis for liability in tort regardless of privity or standing ? Ordinary negligence requires a privity or third party beneficiary relationship 5 17 Legal Terms Affecting CPAs’ Liability Other terms 5 18 Auditor’s Liability ? Joint and several liability legal Deep Pockets ? many state laws allow third party persons to recover damages from the person with the deepest pockets ? Proportionate liability shared responsibility of the damages based on fault 5 19 Private Litigation Reform Act 1995 ? Federal lawsuits under SEC1934 Act ? Some states have similar acts ? Uses proportionate liability ? Responsibility divided among parties ? If so
規(guī)章制度相關(guān)推薦
鄂ICP備17016276號(hào)-1