Auditors in the United States may form limited liability partnerships. What does this mean for civil liability of auditors?

Question

Quizplus · Accepted Answer

The formation of a limited liability partnership allows individual partners to avoid personal financial liability for the negligent acts of other partners. In the context of auditing, this means that partners who did not contribute to audit failures are protected from liability for the actions of other partners who were negligent. However, the audit firm as a whole can still be held liable for any damages resulting from audit failures, and partners who were directly involved in the negligent acts can still be held individually liable.

Auditors in the United States May Form Limited Liability Partnerships