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:

Injuries

Physical harm or damage to a person's body caused by accidents, violence, negligence, or other external forces.

Independent Contractor

An individual or entity hired to perform work for another entity as a non-employee.

Mutual Accountability

Refers to a shared responsibility among members of a team or organization to achieve common goals and uphold commitments.

Collective Work

Involves tasks or projects undertaken by a group where responsibilities, resources, and outcomes are shared among members.