Auditor legal liability: Auditor legal liability includes the legal activities against or for the auditors. The auditor is in the contractual relationship with theclient and if he does not perform according to the terms of the contract, the client can claim against the auditor.As per the common law, the auditor is liable for the negligence, breach of contract, and fraud procedure claimed by the clients. To describe: The difference among the four standards that have evolved for defining auditor’s liability for ordinary negligence to third parties under common law

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Chapter 20, Problem 20.5RQ

To determine

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Auditor legal liability: Auditor legal liability includes the legal activities against or for the auditors. The auditor is in the contractual relationship with theclient and if he does not perform according to the terms of the contract, the client can claim against the auditor.As per the common law, the auditor is liable for the negligence, breach of contract, and fraud procedure claimed by the clients.

To describe:The difference among the four standards that have evolved for defining auditor’s liability for ordinary negligence to third parties under common law

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