In rare cases, auditors have been held liable for criminal acts. A criminal conviction against an auditor can result only when it is demonstrated that the auditor:

Question

Quizplus · Accepted Answer

Criminal liability for auditors typically requires that they were knowingly involved in the presentation of false financial statements. Employing a negligent assistant or being negligent themselves may lead to civil liability, but not necessarily criminal liability unless it can be shown that they had criminal intent. causing a financial loss to an innocent third party may also result in civil liability, but not necessarily criminal liability if there is no evidence of knowing involvement in presenting false financial statements.

In Rare Cases, Auditors Have Been Held Liable for Criminal