Auditors Can Be Held Liable Under Two Classes of Law

question 22

Essay

Auditors can be held liable under two classes of law when sued by clients, investors, creditors, or the government. Identify and briefly explain both classes of law.

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Definitions:

American Revolution

The political and military conflict between the thirteen American colonies and Great Britain from 1775 to 1783, resulting in the independence of the colonies and the formation of the United States.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis. It was the deadliest conflict in human history.

Wartime Agencies

Organizations created during times of war to oversee production, ration goods, and manage other aspects of the home front.

Production

The process of creating, manufacturing, or outputting goods and services through the combination of labor, materials, and technology.