Auditor Liability – International Developments

Author:Roger ACTON, ACCA

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Keywords:liability, reform, regulation, risk exposure, professional insurance

Abstract:
The article approaches the topic of auditor liability from an international perspective and discusses some of the issues and the options that are currently available to the profession. \r\nTo begin with, it approaches the situations when an auditor could find himself being threatened with legal action, depending on how the law is framed in individual countries.\r\n\r\nThe main question the article will approach is not so much who has or should have the right to sue an auditor for negligent work, but ‘should a claimant be entitled to pursue the auditor for the whole of the amount of his claim regardless of any other relevant factors?’ \r\n\r\nThe article details different approaches and regulatory structures to auditors’ liability.

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