If an auditor breaks a contractual obligation,such as failing to complete an audit within the time frame specified in the engagement letter,what kind of liability does the auditor face?

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If an auditor breaks a contractual obligation, such as failing to complete an audit within the time frame specified in the engagement letter, the auditor faces civil liability. Civil liability refers to the legal responsibility an individual has to pay for damages or losses suffered by another party as a result of their actions or failures to act. In this case, if the client suffers financial harm due to the auditor's delay, the client may sue the auditor for damages. However, the auditor would not face criminal liability unless their failure to complete the audit was intentional and amounted to fraud or another criminal offense. The auditor may also face professional sanctions, such as penalties or loss of licensure, depending on the severity of their breach of contract.

If an Auditor Breaks a Contractual Obligation,such as Failing to Complete