QUESTION ONE Corporate scandals have become commonplace in recent times. Many stakeholders have blamed the external auditors for allowing such events to occur and there has been an increasing number of negligence cases brought against the auditors, thereby leading to the auditors paying several large amounts in compensation (liability). 6) Evaluate the arguments the auditing profession have put forward to lobby for the curtailment of the auditor's liability to third parties, and (ii) discuss the profession's proposals to minimise auditor's liability. (50 Marks)