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Auditors have several legal obligations according to common law and statutes. They are subject to lawsuits for negligence if they fail to comply with professional standards. Auditors must exercise due diligence in their work to defend against breach of contract claims. Securities laws also impose liabilities on auditors, who can be sued for misleading statements or omissions in documents like audit reports. The Private Securities Litigation Reform Act of 1995 aimed to reduce frivolous litigation against aud

Author

Hasimada YA

Language

EN