Damage to another person's property or financial interests can also trigger negligence liability. When licensed...
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Accounting
Damage to another person's property or financial interests can also trigger negligence liability. When licensed professionals do not exercise the degree of care expected of someone with their level of skill and training, we call it professional negligence (liability) or malpractice. One such example is the professional liability risks faced by accountants. One particular issue with accountant malpractice is that of who may sue. Accounting clients have customers, suppliers, and lenders who sometimes rely on an accountant's audit of the client's books. If the audit fails to uncover a client's serious financial problems that later cause losses to these third parties, the result might be a lawsuit against the auditors.
Under what circumstances should an accounting firm be held liable for careless auditing work?
What Duties are owed by the accountant?
What liability exists? Examine the standard of care required of an accountant for purposes of negligence liability.
Distinguish between three different approaches to an auditor's liability to third persons for negligence?
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