I am not sure I am interpreting and answering this question correctly.. Below is the question followed by my answer. Can you please review and confirm if i am on the right track?

Q:

There is no agreement internationally on how to address the issue of auditor liability.

Required: Describe the approach taken in your own country in addressing the issue of auditor liability, and explain the rationale behind that approach.

A:

Auditors in the United States are liable for their actions and must take precautions to avoid negligence, fraud, and breaches of contract with their clients or third parties. If found to be at fault, auditors could be held liable for any damages they have caused. Auditors can be held liable for both criminal and civil cases. Due to the risk of being sued, it is important that auditors carry out their duties in a professional and honest way. By creating an environment where the auditors are held personally liable, it emphasizes the importance of the matter and, ideally, encourages auditors to thoroughly review their work to the best of their abilities and practice due care in an effort to decrease the chance of a dicey audit.