An example of auditor legal liability to third parties under common law would be the federal government prosecuting an auditor for knowingly issuing an incorrect audit report.

Question

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Auditor legal liability to third parties under common law typically involves civil actions brought by third parties (such as investors) who rely on the audit report, not criminal prosecutions by the federal government. Federal prosecutions would fall under statutory law, not common law.

An Example of Auditor Legal Liability to Third Parties Under