An important issue, and one of major concern to an external auditor and CPA firm is legal liability. The CPA firm may have to contend with litigation and must be prepared to respond accordingly. Which of the following most accurately describes an auditor's potential liability under common law?

Under common law doctrines and precedents, the auditor does not assume any liability for audit and attest engagements.

The liability is solely the clients.

O Under common law, an auditor may be liable to other beneficiaries, which represent a foreseen class of third parties.

O Common law makes the auditor liable under either contract or tort law, and may also make the auditor liable to foreseen

and foreseeable third parties.

Under common law, an auditor may be liable to clients under either common law or tort law, but the auditor is not liable to third parties.

an important issue, and one of major concern to an external auditor and CPA firm is legal liability. The CPA firm may have to contend ith litigation and must be prepared to respond accordingly. Which of the following most accurately describes an auditor's potential ability under common law? Under common law doctrines and precedents, the auditor does not assume any liability for audit and attest engagements. The liability is solely the clients. Under common law, an auditor may be liable to other beneficiaries, which represent a foreseen class of third parties. Common law makes the auditor liable under either contract or tort law, and may also make the auditor liable to foreseen and foreseeable third parties. Under common law, an auditor may be liable to clients under either common law or tort law, but the auditor is not liable to third parties