CIA3005 Advanced Auditing Individual Assignment (5%) Topic: Auditor's Legal Liability A 'in order to understand issue of legal liability of auditor, it's important to first understand the environment that Chartered Accountants operate today. That environment is characterized by the increasing globalization of business. This raises the threat of catastrophic exposure to legal liability for auditors in an increasingly litigious business climate' (The Institute of Chartered Accountants of Ontario, 2013). "The decision in the Caparo case has led many informed commentators to believe that auditors have no liability to third parties for negligence, which has led to deterioration in the quality of audit work." (Note: the Coparo case is Caparo Industries plc vs Dickman and Others - UK House of Lords judgment.) Required: Explain the decision in the Caparo case and state the parties who may successfully sue the auditor for negligence. (4 marks) Discuss the reasons why the Caparo judgment may lead to deterioration in the quality of auditors work. (6 marks) glish (United States CIA3005 Advanced Auditing Individual Assignment (5%) Topic: Auditor's Legal Liability A 'in order to understand issue of legal liability of auditor, it's important to first understand the environment that Chartered Accountants operate today. That environment is characterized by the increasing globalization of business. This raises the threat of catastrophic exposure to legal liability for auditors in an increasingly litigious business climate' (The Institute of Chartered Accountants of Ontario, 2013). "The decision in the Caparo case has led many informed commentators to believe that auditors have no liability to third parties for negligence, which has led to deterioration in the quality of audit work." (Note: the Coparo case is Caparo Industries plc vs Dickman and Others - UK House of Lords judgment.) Required: Explain the decision in the Caparo case and state the parties who may successfully sue the auditor for negligence. (4 marks) Discuss the reasons why the Caparo judgment may lead to deterioration in the quality of auditors work. (6 marks) glish (United States