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B. PricewaterhouseCoopers (PwC), the global auditor was facing a class action from bondholders of its collapsed audit client Assess today over allegations of shoddy accounting

B. PricewaterhouseCoopers (PwC), the global auditor was facing a class action from bondholders of its collapsed audit client Assess today over allegations of shoddy accounting work by the big four consultancy. (Financial Review, 2020) Required: i. Explain In the context of auditors liability, the following terms: (6 MARKS ) a. Privity of contract b. Ordinary negligence c. Professional indemnity insurance ii. Differentiate the auditors liability under Common Law and Statutory Law. (6 Marks)

C. Critically discuss the types of fees that can be charged by auditors as prescribed under Section 240 of the By-Laws on Professional Ethics. (5 Marks)

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