Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

External auditors will be liable to the client as well as the third party who have relied on the financial statements upon which they expressed

External auditors will be liable to the client as well as the third party who have relied on the financial statements upon which they expressed an opinion. Therefore, it is necessary for external auditors to exercise professional care when carrying out audit services. However, there is no general standard for the expected level of skill and care required for carrying out an audit assignment.

a. Explain various benefits of an auditing services and how can the external auditor maintain a reasonable standard of professional care and in an action for negligence against an auditor, what is a prove that need to provide by the client?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investment Science

Authors: David G. Luenberger

1st International Edition

0195391063, 9780195391060

More Books

Students also viewed these Finance questions