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If the role of auditors is primarily to reduce information risk to third parties, shouldnt all third parties that meet the other criteria (reliance on
If the role of auditors is primarily to reduce information risk to third parties, shouldn’t all third parties that meet the other criteria (reliance on and loss from materially misstated financial statements) always be able to sue for negligence just like the client? Why or why not? Given that any increase in auditor’s liabilities might also increase frivolous law suits, suggest a way that the legal environment can be changed to reduce frivolous lawsuits.
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
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