Which of the following is an illustration of auditor's liability to a client?

Question

Quizplus · Accepted Answer

Auditor's liability to a client specifically refers to situations where the auditor fails to fulfill their contractual obligations to the client, such as not detecting fraud or errors within the client's financial statements. In option D, the client is directly suing the auditor for not discovering a theft of assets by an employee, which falls under the auditor's responsibility to detect significant misstatements, including fraud, thereby illustrating auditor's liability to a client.

Which of the Following Is an Illustration of Auditor's Liability