Audit firm litigation: An audit firm may face litigations for its failure in an audit engagement. Most of the audit litigations occur at the time of failure of business or detection of company frauds by the third party. To indicate: The difference between an error on the part of the auditor and ordinary negligence.

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Chapter 4, Problem 12RQSC

To determine

Audit firm litigation:

An audit firm may face litigations for its failure in an audit engagement. Most of the audit litigations occur at the time of failure of business or detection of company frauds by the third party.

To indicate: The difference between an error on the part of the auditor and ordinary negligence.

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