Auditor's Liability and Methods for
its Limitation
Author:
Nicolae MĂGDAŞ
JEL:
M42
DOI:
10.20869/AUDITF/2018/150/011
Keywords:
Financial auditor, liability, conditions of
liability, conditions of liability of the internal auditor,
conditions of liability of the external auditor, limitations of
liability.
Abstract:
The liability of the financial auditor has to be treated
distinctively based on his relationship with the audited
entity: internal auditor or external auditor. The logic
behind this aspect results from the fact that, based on its
relationship with the audited company, the liability has its
source either in the Labour law, in what concerns the
internal auditor, or it is a contractual liability, in case of
the external auditor, even in the situation when this
engages in internal auditing work through a contract. In
both cases, the sanctions applied by the professional
bodies to which they belong are applicable. The liability
of the financial auditor is distinguished in categories as
disciplinary, administrative, civil and criminal, the
auditors having at their disposal methods to limit the
liability, methods that will be displayed in the paper.
This paper is concerned with the liabilities that the
financial auditors can have, distinguished based on
whether they are internal or external to the audited
company, using in the analysis of the topic the method
of deduction and induction, starting from the content
analysis of the legislation and regulations in force. The
role of this article is not only to present the situations
which can attract the liability of the financial auditors and
the types of liabilities, but also to support them with a
presentation of and methods for limiting the liability,
determined with the help of an analysis of these
liabilities, and to protect them from a professional point
of view.
Abstract(219KB)
Article(301KB)