4)  Explain if, and why an accountant will be held liable to: its client,  to 3rd party intended users of the financial statements and audits it prepares for its client, and  to reasonably foreseeable users of the work, it prepared for its client.   ∙ Be sure to identify who reasonably foreseeable users would be and why the accountant is responsible to them in the absence of privity.

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

A: This question explains about the auditor's role on a client fails to follow the law.

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

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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: 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: e been misleading

A: Generally Accepted Accounting Principles refer to a systematic set of laws and policies used in…

Q: What does a third-party user of financial statements have to prove under common law in a suit…

A: The objective of this question is to understand what a third-party user of financial statements…

Q: Is it permissible to provide the customer copies of the auditor's previous paperwork? If so, are…

A: Auditor refers to examination of the financial statements of the company in order to check the…

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: 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: Describe the action that an auditor should take if an attorneyrefuses to provide information that is…

A: In general, Auditor is a person or firm who is appointed by the company to execute or to…

Q: Give an explanation of the legal foundation for suing a CPA. What defenses does the auditor have to…

A: Since auditors are responsible for ensuring that financial statements are honest and fair, they must…

Q: When an auditor uses the work of an expert, who has the responsibility for arriving at ar overall…

A: Introduction:- The auditor’s use of the work of an expertise in a field other than accounting or…

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: If a lawyer refuses to furnish corroborating information regarding litigation, claims, and…

A: The correct answer is: (C) consider the refusal to be a scope limitation. The auditor would…

Q: What does a third-party user of financial statements have to prove under common law in a suit…

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

Q: Which is NOT the function of an auditor? a. To give a true and fair view b. To ensure compliance to…

A: The function of an auditor is to apply proper audit procedure to obtain appropriate audit evidence,…

Q: xplain the auditor's role in ensuring that rules and regulations are followed. How does this…

A: Non-compliance with applicable rules and regulations may hurt financial statements, as violators…

Q: Do auditors have an obligation to report on (a) audited financial statements and (b) any additional…

A: This question tells abut audited financial statements and additional information required by law

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

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

Q: Define the obligations of auditors in the event that a client fails to comply with applicable laws…

A: Report of the auditor: An auditor's report is a formal document created by an auditor. The auditor…

Q: What are the responsibilities of (a) client management, (b) auditors, and (c) the client’s…

A:

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

A:

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: Explain the legal basis for a cause of action against an auditor. What are the defenses available to…

A: Step 1 Auditors should report true and fairly which enhance the reliability of financial statements…

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…