The auditor has a duty of care to a company that hires the auditor and has a contract with him or her under privity of contract.

Question

Quizplus · Accepted Answer

When an auditor is hired by a company and enters into a contract with them, the auditor assumes a duty of care towards that company under privity of contract. This means that the auditor is obligated to provide professional services with reasonable care and skill and can be held liable for any damages that result from negligence or breach of contract.

The Auditor Has a Duty of Care to a Company