L22 Notes_Part_4 - clients and the duties should be specified in the engagement letter a client's reasons for suing i issuing clean opinion w/o

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Common Law—Clients Requires Due Care Degree of Liability to the Client breach of contract Negligence, gross negligence and fraud (acting with knowledge and intent to deceive)
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Breach of Contract Breach-of-contract liability is based on the auditor’s failing to complete the services agreed to in the contract with the client.
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Common Law (civil): Liability to Clients Contract Law A. Liability to Clients (Largest # of lawsuits but usually are small, not reported in press, and settled out of court) 1. Contract Law - CPA's have a direct contractual relationship with their
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Unformatted text preview: clients and the duties should be specified in the engagement letter a. client's reasons for suing i. issuing clean opinion w/o following GAAS ii. report not delivered on a timely basis iii. auditor violates confidentiality b. client's typically demands one or more of the following: i. specific performance ii. direct monetary damages iii. incidental or consequential damages that indirectly result from non-performance c. Confidentiality ex: Funds of Funds - > Dilemma...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L22 Notes_Part_4 - clients and the duties should be specified in the engagement letter a client's reasons for suing i issuing clean opinion w/o

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