LegalLiability(英文版)(35页).ppt

Legal Liability Chapter 4 Learning Objective 1 Changed Legal Environment Learning Objective 2 Business Failure, AuditFailure, and Audit Risk Business Failure, AuditFailure, and Audit Risk Business Failure, AuditFailure, and Audit Risk Business Failure, AuditFailure, and Audit Risk Learning Objective 3 Legal ConceptsAffecting Liability Legal Terms AffectingCPAs’ Liability Legal Terms AffectingCPAs’ Liability Legal Terms AffectingCPAs’ Liability Major Sources ofAuditor’s Legal Liability Learning Objective 4 Liability to Clients Auditor’s DefensesAgainst Client Suits Learning Objective 5 Liability to Third PartiesUnder Common Law Foreseen Users Learning Objective 6 Securities Act of 1933 Securities ExchangeAct of 1934 Auditor Defenses – 1934 Act SEC Sanctions SEC Sanctions Learning Objective 7 Criminal Liability Learning Objective 8 The Profession’s Responseto Legal Liability The Profession’s Responseto Legal Liability Protecting Individual CPAsfrom Legal Liability Example Protecting Individual CPAsfrom Legal Liability Example Protecting Individual CPAsfrom Legal Liability Example End of Chapter 4 Oppose law suits Education of users Sanction members for improper conduct and performance Lobby for changes in laws Deal only with clients possessing integrity Hire qualified personnel Follow the standards of the profession Maintain independence Understand the client’s business Perform quality audits Document the work properly Obtain an engagement and a representation letter Maintain confidential relations Carry adequate insurance Seek legal counsel Choose a form of organization with limited liability Exercise professional skepticism 4 - * ?2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley ?2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Understand the litigious environment in which CPAs practice. Audit professionals have a responsibility under common law to fulfill implied or ex