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1、审计学：一种整合方法-第12版-英文版Chapter05,Legal Liability,Chapter 5,审计学：一种整合方法-第12版-英文版Chapter05,Learning Objective 1,Understand the litigious environment in which CPAs practice.,审计学：一种整合方法-第12版-英文版Chapter05,Changed Legal Environment,Audit professionals have a responsibility under common law to fulfill implied o
2、r expressed contracts with clients.,They are liable to their clients for negligence and/or breach of contract should they fail to provide the services or not exercise due care in their performance.,审计学：一种整合方法-第12版-英文版Chapter05,Changed Legal Environment,Both the number of lawsuits and sizes of awards
3、 to plaintiffs remain high.,Despite efforts by the profession to address the legal liability of CPAs,审计学：一种整合方法-第12版-英文版Chapter05,Learning Objective 2,Explain why the failure of financial statement users to differentiate among business failure, audit failure, and audit risk has resulted in lawsuits.
4、,审计学：一种整合方法-第12版-英文版Chapter05,Business Failure, Audit Failure, and Audit Risk,Business failure,It occurs when a business is unable to repay its lenders or meet the expectations of its investors because of economic or business conditions.,审计学：一种整合方法-第12版-英文版Chapter05,Business Failure, Audit Failure,
5、and Audit Risk,Audit failure,It occurs when the auditor issues an incorrect audit opinion because it failed to comply with the requirements of auditing standards.,审计学：一种整合方法-第12版-英文版Chapter05,Business Failure, Audit Failure, and Audit Risk,Audit risk,It represents the risk that the auditor will conc
6、lude that the financial statements are fairly stated and an unqualified opinion can be issued when, in fact, they are materially misstated.,审计学：一种整合方法-第12版-英文版Chapter05,Learning Objective 3,Use the primary legal concepts and terms concerning accountants liability as a basis for studying legal liabil
7、ity of auditors.,审计学：一种整合方法-第12版-英文版Chapter05,Lack of privileged communication,Liability for the acts of others,Prudent person concept,Legal Concepts Affecting Liability,审计学：一种整合方法-第12版-英文版Chapter05,Legal Terms AffectingCPAs Liability,Terms related to negligence and fraud:,Ordinary negligence,Constr
8、uctive fraud,Gross negligence,Fraud,审计学：一种整合方法-第12版-英文版Chapter05,Legal Terms AffectingCPAs Liability,Terms related to contract law:,Breach of contract,Third-party beneficiary,审计学：一种整合方法-第12版-英文版Chapter05,Legal Terms AffectingCPAs Liability,Other terms:,Common law,Joint and several liability,Statutor
9、y law,Separate and proportionate liability,审计学：一种整合方法-第12版-英文版Chapter05,Four Major Sources of Auditors Legal Liability,Liability to third parties,Federal securities laws,Liability to clients,Criminal liability,审计学：一种整合方法-第12版-英文版Chapter05,Learning Objective 4,Describe accountants liability to client
10、s and related defenses.,审计学：一种整合方法-第12版-英文版Chapter05,Liability to Clients,The most common source of lawsuits against CPAs is from clients.,审计学：一种整合方法-第12版-英文版Chapter05,Auditors Defenses AgainstClient Suits,Lack of duty to perform,Nonnegligent performance,Contributory negligence,Absence of causal con
11、nection,审计学：一种整合方法-第12版-英文版Chapter05,Learning Objective 5,Describe accountants liability to third parties under common law and related defenses.,审计学：一种整合方法-第12版-英文版Chapter05,Liability to Third Parties Under Common Law,Ultramares doctrine,Foreseen users,审计学：一种整合方法-第12版-英文版Chapter05,Foreseen Users,Cre
12、dit alliance,Restatement of torts,Foreseeable user,审计学：一种整合方法-第12版-英文版Chapter05,Auditor Defenses AgainstThird-Party Suits,The preferred defense is nonnegligent performance.,审计学：一种整合方法-第12版-英文版Chapter05,Learning Objective 6,Describe accountants civil liability under the federal securities laws and re
13、lated defenses.,审计学：一种整合方法-第12版-英文版Chapter05,Securities Act of 1933,The Securities Act imposes an unusual burden on the auditor.,Section 11 of the 1933 act defines the rights of third parties and auditors.,审计学：一种整合方法-第12版-英文版Chapter05,Securities ExchangeAct of 1934,The liability of auditors under th
14、is act often centers on the audited financial statements issued to the public in annual reports or submitted to the SEC as a part of annual Form 10-K reports.,审计学：一种整合方法-第12版-英文版Chapter05,Rule 10b-5 of the Securities Exchange Act of 1934,Section 10 and rule 10b-5 are often called the antifraud provi
15、sions of the 1934 act.,审计学：一种整合方法-第12版-英文版Chapter05,Auditor Defenses 1934 Act,Nonnegligent performance,Lack of duty,Absence of causal connection,审计学：一种整合方法-第12版-英文版Chapter05,SEC Sanctions,The SEC has the power in certain circumstances to sanction or suspend practitioners from doing audits for SEC co
16、mpanies.,In recent years, the SEC has temporarily suspended a number of individual CPAs from doing any audits on SEC clients.,审计学：一种整合方法-第12版-英文版Chapter05,Foreign CorruptPractices Act of 1977,This act makes it illegal to offer a bribe to an official of a foreign country for the purpose of exerting influence and obtaining or retaining business.,审计学：一种整合方法-第12版-英文版Chapter05,Sarbanes-Oxley Act of 2002,This act requires the CEO and CFO to certify the annual and quarterly financial statements filed w
