Which of the following is a True statement regarding auditors' liability?

Question

Quizplus · Accepted Answer

The most common source of lawsuits against CPAs is from clients. This is because clients have a direct relationship with the auditor and may hold them responsible for financial losses. The level of care required for a review or compilation can vary, and engagement letters may limit liability but not relieve the auditor of all responsibility. An auditor may not always be guilty of negligence if they fail to uncover fraud, as fraud can be difficult to detect and may be hidden by those perpetrating it.

Which of the Following Is a True Statement Regarding Auditors