The auditor faces legal liability from which of the following sources?
A)audit liability
B)third party liability under common law
C)civil liability under the federal securities laws
D)criminal clients
E)civil liability under state securities laws
F)both A and B
G)both B and C
H)both D and E

Question

Quizplus · Accepted Answer

The auditor faces legal liability from civil liability under the federal securities laws and third party liability under common law, which are both covered under option G. The other options (A, D, and E), while they may represent forms of liability, are not the primary sources of legal liability for auditors. Criminal clients, for example, would not create liability for the auditor unless the auditor was somehow involved in the criminal activity. Similarly, audit liability and civil liability under state securities laws may be factors in certain situations, but they are not the primary sources of legal liability for auditors.

The Auditor Faces Legal Liability from Which of the Following