審計的合法義務(wù)2024/4/3審計的合法義務(wù)審計的合法義務(wù)2024/4/2審計的合法義務(wù)1$2BillionpaidinS&LLawsuitsErnst&Young 1992 $400millionDeloitte&Touche 1994$312millionKPMG 1994 $187millionArthurAndersen 1993$82million審計的合法義務(wù)$2BillionpaidinS&LLawsuit2LawsuitsAgainstAuditorsExpectationgapondetectionoffraudAuditorsuedincivilcourtBreachofcontractTortactionsfornegligenceCriminalCharges審計的合法義務(wù)LawsuitsAgainstAuditorsExpec3ChangedLegalEnvironmentAuditprofessionalshavearesponsibilityundercommonlawtofulfillimpliedorexpressedcontractswithclients.Theyareliabletotheirclientsfornegligenceand/orbreachofcontractshouldtheyfailtoprovidetheservicesornotexerciseduecareintheirperformance.審計的合法義務(wù)ChangedLegalEnvironmentAudit4BusinessFailure,Audit

Failure,andAuditRiskBusinessFailureAuditFailureAuditRisk審計的合法義務(wù)BusinessFailure,Audit

Failur5BusinessFailure,Audit

Failure,andAuditRiskBusinessfailureItoccurswhenabusinessisunabletorepayitslendersormeettheexpectationsofitsinvestorsbecauseofeconomicorbusinessconditions.審計的合法義務(wù)BusinessFailure,Audit

Failur6BusinessFailure,Audit

Failure,andAuditRiskAuditfailureItoccurswhentheauditorissuesanerroneousauditopinionastheresultofanunderlyingfailuretocomplywiththerequirementsofgenerallyacceptedauditingstandards(GAAS).審計的合法義務(wù)BusinessFailure,Audit

Failur7BusinessFailure,Audit

Failure,andAuditRiskAuditriskItrepresentstheriskthattheauditorwillconcludethatthefinancialstatementsarefairlystatedandanunqualifiedopinioncanbeissuedwhen,infact,theyaremateriallymisstated.審計的合法義務(wù)BusinessFailure,Audit

Failur8LackofprivilegedcommunicationLiabilityfortheactsofothersPrudentpersonconceptLegalConcepts

AffectingLiability審計的合法義務(wù)LackofLiabilityforPrudentLeg9FederalsecuritieslawsThirdpartyClientMajorSourcesof

Auditor’sLegalLiabilityCriminalliability審計的合法義務(wù)FederalThirdpartyClientMajor10LiabilitytoClientsThemostcommonsourceoflawsuitsagainstCPAsisfromclients.審計的合法義務(wù)LiabilitytoClientsThemostc11LegalTermsAffecting

CPAs’LiabilityTermsrelatedtocontractlawBreachofcontractThirdpartybeneficiary審計的合法義務(wù)LegalTermsAffecting

CPAs’Li12NegligenceTobeheldliable,theauditor’sworkmustbeshownasnegligent.

Negligence(ordinary)isthelackofreasonablecare.Whatwouldaprudentauditordointhesamecircumstances.FollowingGAASisnotalwaysenoughreasonablecare

GrossNegligenceisthelackofminimumcare.Constructivefraud

Fraud-anintentionalacttodeceive.審計的合法義務(wù)NegligenceTobeheldliable,t13RelationshiptoSueforOrdinaryNegligencePrivity-partytoacontractMusthaveprivitytosueforbreachofcontractContractbetweenauditorandclientThirdPartyBeneficiary(standing)InvestorsCreditorsStandingdependsonstatecommonlaw.審計的合法義務(wù)RelationshiptoSueforOrdina14ThirdPartyBeneficiary-StandingLimitedexposure–severalstatesOnlyliableifthethirdpartywasspecificallyknowntotheauditorandthatthethirdpartywouldberelyingontheF/SRestatementofTorts–majorityofstatesLiabletoforeseenthirdpartyusersReasonablyForeseeableUsers–WisconsinandMississippiAlmostunlimitedliabilitytoanypossibleusersoftheF/S.審計的合法義務(wù)ThirdPartyBeneficiary-Sta15

LiabilityandStandingGrossnegligenceandfraudareabasisforliabilityintortregardlessofprivityorstandingOrdinarynegligencerequiresaprivityorthirdpartybeneficiaryrelationship審計的合法義務(wù)

LiabilityandStandingGrossn16LegalTermsAffecting

CPAs’LiabilityOthertermsCommonlawStatutorylawJointandseveralliabilitySeparateandproportionateliability審計的合法義務(wù)LegalTermsAffecting

CPAs’Li17Auditor’sLiabilityJointandseveralliabilitylegal-DeepPocketsmanystatelawsallowthirdpartypersonstorecoverdamagesfromthepersonwiththedeepestpocketsProportionateliability-sharedresponsibilityofthedamagesbasedonfault審計的合法義務(wù)Auditor’sLiabilityJointands18PrivateLitigationReformAct1995

FederallawsuitsunderSEC1934ActSomestateshavesimilaractsUsesproportionateliabilityResponsibilitydividedamongpartiesIfsomeofthedefendantsareinsolvent,mayincreasesolventdefendantsshareby50%ofwhattheyowe.Jointandseverallyliabletosmallinvestorplaintiffs(under$200,000andlost10%ofnetworth)KnowinglycommittingaSECviolationcanmakedefendantjointandseverallyliable審計的合法義務(wù)PrivateLitigationReformAct19SecuritiesLitigationUniformStandardsAct1998LawyerswantedtofilelawsuitsunderstatelawTakeadvantageofjointandseveralliabilityEasiertoholdaccountantsliableforordinarynegligenceThisactrequiresclassactionlawsuitsof50ormorepartiestobefiledunderfederalcourts審計的合法義務(wù)SecuritiesLitigationUniform20BurdenofProofonPlaintiffShowadamageorlossNecessaryprivityorthirdpartybeneficiaryrelationshipF/SaremisleadingReliedonF/SF/SweredirectcauseoflossAccountantwasnegligentorworse審計的合法義務(wù)BurdenofProofonPlaintiffSh21DefensesforAccountantNostandingorprivityF/SnotmisleadingAuditwasinaccordancewithGAASperformedwithduecarePlaintiffdidnotrelyonF/SLosscausedbysomethingelseContributorynegligence-plaintiffcontributedtolossPlaintiffdidnotsufferarealloss審計的合法義務(wù)DefensesforAccountantNostan22ForeignCorruptPracticesActof1977RequiresacompanytokeepreasonablerecordstoallowfairpresentationofF/S.RequiresacompanytodeviseasystemofinternalcontrolsProhibitsbribestoforeignofficialsAdministeredbytheSECfor1&2above審計的合法義務(wù)ForeignCorruptPracticesAct23StatutoryLawLiabilityForeignCorruptPracticesActSECactsof33and34Violationsofinternalrevenuecode審計的合法義務(wù)StatutoryLawLiabilityForeign24SECSEC33-prohibitsfraudulentactsrelatedtoinitialofferingsofstocktothepublic.SEC34-prohibitsfraudulentactsrelatedtosubsequenttradingofstocks.GavepowertoestablishaccountingrulesReliesonaccountingprofessiontosetstandards審計的合法義務(wù)SECSEC33-prohibitsfraudule25SecurititiesAct1933CoverpublicofferingsofsecuritiesRequiresfilingofregistrationstatementRegulationS-XrequiresannualauditedF/SandinterimunauditedF/SRegulationS-Krequiresdisclosuresandothersupplementalinformation審計的合法義務(wù)SecurititiesAct1933Coverpu26ExchangeAct1934RegulatesTradingofSecuritiesCompanieswith$10MillioninAssetsormorethan500stockholdersrequiredtoregisterRequiresthefollowingreportsForm10KAnnualReportForm10QQuarterlyReportForm8KSpecialEventReportEDGAR–electronicdatagathering,analysisandretrievalsystem審計的合法義務(wù)ExchangeAct1934RegulatesTra27Liabilityunder1933ActSection11allowsallpurchaserstosueAccountantsareconsideredexpertsonF/SinformationontheprospectusAccountantshaveadditionalburdenasexpertShiftsburdenofprooftoaccountantAccountantsaregivensafeharborforinteriminformationonforecasts審計的合法義務(wù)Liabilityunder1933ActSectio28Liabilityunder1933ActCont.StatuteofLimitationsWithin1yearofdiscoveryofmisstatementOrwithin3yearsofofferingDueDiligenceDefenseCausationDefenseSection17–FraudunlawfulunderactSection24–setcriminalliabilityforfilingmisleadingF/S;finesandprison審計的合法義務(wù)Liabilityunder1933ActCont.29LiabilityUnder1934ActRule10b-5AntifraudUnlawfultodefraudbuyer/sellersecuritiespubliclytradedonanationalmarketMustprovescienter(intenttodeceive)Section18CivilLiabilityPersonsmakingfalseormisleadingstatementsareliabletopersonsthatsufferalossfromrelyingofF/SAuditormustprovegoodfaith,noknowledgeofmisleadingstatements.Section32CriminalLiability–finesupto$10,000andimprisonmentofupto5years.審計的合法義務(wù)LiabilityUnder1934ActRule130LiabilityUndertheActsSEC33

SEC34Provedamageorloss SameAnypurchasercansue purchaseror sellercansue

Doesnothavetoshowreliance ShowrelianceonF/S onF/S

NotrequiredtoshowF/S ShowF/Scausedloss causedloss

DoesnothavetoshowCPA ShowCPAhadwasnegligent scienterintent todeceive審計的合法義務(wù)LiabilityUndertheActsSEC331Defenseforaccountant:

SEC33

SEC34Duediligence ActedinCausedbysomethingelse goodfaith Theaccountanthastheburdenofproof.Statuteoflimitationsis12monthsorwithin3yearsofpublicoffering審計的合法義務(wù)Defenseforaccountant:

SEC3332SECSanctionsTheSEChasthepowerincertaincircumstancestosanctionorsuspendpractitionersfromdoingauditsforSECcompanies.Rule2(e)oftheSEC’s

RulesofPracticesays:

審計的合法義務(wù)SECSanctionsTheSEChasthep33SECSanctionsThecommissionmaydeny,theprivilegeofappearingorpracticingbeforeitinanywaytoanypersonwhoisfoundbythecommission…(1)nottopossesstherequisitequalificationstorepresentothers,or(2)tobelackingincharacterorintegrityortohaveengagedinunethicalorimproperprofessionalconduct.審計的合法義務(wù)SECSanctionsThecommissionma34RacketeerInfluencedand

CorruptOrganizationActThisactallowsaninjuredpartytoseektreble(triple)damagesandrecoveryoflegalfeesincaseswhereitcanbedemonstratedthatthedefendantwasengagedina“patternof