The Most Restrictive View Under Common Law Is That Auditors

question 1

Essay

The most restrictive view under common law is that auditors have no liability to third parties who do not have a privity relationship with the auditor. Briefly define privity and the effect it has on the auditor, client, investors, and creditors under common law.

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Definitions:

Employees

Individuals who are hired to work for another person or business in exchange for compensation.

Public

The general population or the community at large, often referenced in the context of public opinion, public spaces, or public services.

Bad-news Message

Communication designed to convey unfortunate or disappointing information to the recipient in a sensitive and understanding manner.

Positive Note

Ending a communication or situation on an affirmative, optimistic, or constructive manner, emphasizing positive elements.