Auditors’ professional liability in international practice

Author:Mircea LAZĂR, ACCA

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Keywords:responsibility, negligence, case law, professional ethics, audit quality

Abstract:
This article investigates the issue of the auditors’ liability, particularly in respect of claims of negligence in the provision of audit services which may be raised either by audit clients or by third parties.\r\n\r\nReference is made to the international experience in this respect, with special mention of a number of important English court cases against auditors. The most important of these cases, the Caparo case, is presented in detail, as the judgment in this case is the cornerstone of English case law in the matter of auditors’ negligence. \r\n\r\nThe article end with a presentation of ways in which auditors can prevent being brought to justice for negligence, as well as methods of reducing auditors’ liability should claims be raised against them, again by reference to international practice.\r\n

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