Liability to third parties, Auditing

Assignment Help:

Liability to third parties

For long time liability to third parties existed only in respect to physical damage. Liability for financial loss is a current development.  Illustration of occasions whenever an accountant might run the risk of assuring a liability to third parties might comprise the following:

1) Preparing financial statements or reports for a client whenever it is known or ought to be known that they are planned to be shown to and relied upon by a third party even when the identity of the third party is not revealed.

2) Giving references concerning a client's credit praiseworthiness or a reassurance as to his capacity to take out the terms of a contract or offering any other reference on behalf of the client.

Again, it should be illustrated that the accountant was neglectful, third parties suffered a financial loss, the financial loss happened as a result of the accountant's negligence and that the accountant know the reason for which his report or accounts were to be employed.


Related Discussions:- Liability to third parties

International, International, Assurance Auditing, Standards Board (IAASB) ...

International, Assurance Auditing, Standards Board (IAASB) The prologue to the International Standards on Quality Control, Auditing, Assurance and Related Services is issued to

Non-statutory audits, Non-statutory Audits The non-statutory audits ar...

Non-statutory Audits The non-statutory audits are performed through independent auditors sicne the owners, proprietors, trustees, members  and governing and professional bodie

Auditors procedures - disclosure and presentation, Auditors Procedures - Di...

Auditors Procedures - Disclosure and Presentation 1) Ascertain that what steps the client uses to identify suppliers, selling on terms that reserve title by enquiry of those c

Auditing different from studying other accounting topics, 1. Why is studyin...

1. Why is studying Auditing different from studying other accounting topics? 2. How might understanding auditing concepts prove useful for consultants, business managers, and other

Evidence, Method of corrercting evidence?

Method of corrercting evidence?

Co-operative societies and parastatals, Co-operative Societies and Parastat...

Co-operative Societies and Parastatals Co-operative Societies An audit in this case is carried out as a general audit except you should notice that the auditor is appoi

The independence between the auditor and the client, Explain the independen...

Explain the independence between the auditor and the client on financial statement audit engagements

Advantages and disadvantages of internal audit?, Benefits of Internal Audit...

Benefits of Internal Audit are following: It is in-expensive. No charted accounted is needed to audit internally. Faults will be removed before preparing financial stateme

Cost and authorization - detailed audit of stock, Cost and Authorization - ...

Cost and Authorization - Detailed audit of stock Cost A favor of the auditor this is restricted generally to determining the technique adopted through the organization

What is an audit process, In previous times, the Kings used to hear their a...

In previous times, the Kings used to hear their accountants narrate the accounts verbally. Though, as the complexity of the accounting function grew, require was felt to thoroughly

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd