The key element that protects an auditor against common law liability is:
A) Adherence to generally accepted accounting principles (GAAP)
B) Adherence to generally accepted auditing standards (GAAS)
C) Compliance with threats and safeguards approach
D) Maintain confidentiality of client information

Question

Quizplus · Accepted Answer

Adherence to generally accepted auditing standards (GAAS) is the key element that protects an auditor against common law liability. GAAS provides guidelines and standards that an auditor must follow while conducting an audit, and adherence to these standards ensures that the auditor has carried out the audit with due care and diligence.

The Key Element That Protects an Auditor Against Common Law