Auditing & Assurance Services 6th Edition by Timothy Louwers

تمرين 350

Breach of Contract. Although large-dollar lawsuits brought by shareholders grab the headlines, auditors are most often sued by the client for breach of contract.
Required:
a. How can auditors be in breach of contract with a client?
b. How can a client be in breach of contract with auditors?
c. What are the best defenses for auditors against breach of contract lawsuits brought by their clients?