Auditor liability to third parties: an international focus

Abstract

Examines the legal environment of the UK, Canada, Australia, New Zealand and the USA with respect to auditor liability. Provides an understanding of the legal risks to accountants associated with third‐party uses of audited financial statements by contrasting accounting liability for negligent misrepresentation in various US settings with those of the four other nations. Liability pressure has been very acute and litigation in the five countries has increased. Evidence supports a trend towards limiting third‐party liability to accountants.

Citation

Pacini, C., Hillison, W. and Sinason, D. (2000), "Auditor liability to third parties: an international focus", Managerial Auditing Journal, Vol. 15 No. 8, pp. 394-407. https://doi.org/10.1108/02686900010353980