Auditors should understand their obligations to clients and third parties under:
1)contract law
2)common law
3)trade practices
4)corporations and securities statutes
A) 1, 2, & 4
B) 1, 2, & 3
C) 1, 3, & 4
D) 1, 2, 3, & 4

Question

Quizplus · Accepted Answer

Auditors have obligations under contract law (agreements with clients), common law (duties of care to clients and certain third parties), trade practices (fair trading obligations), and corporations and securities statutes (regulatory compliance). These areas cover the legal framework within which auditors operate, ensuring they fulfill their duties ethically and legally.

Auditors Should Understand Their Obligations to Clients and Third Parties