Auditors in the United Kingdom sometimes include disclaimers of liability in their audit reports. According to the U.S. Securities and Exchange Commission, how effective is this approach to limiting civil liabilities?
A. It has no effect when included in the financial statements of S. companies.
B. It effectively caps the damage awards that will be made in S. civil courts.
C. It limits who can bring civil action in cases involving the audit of S. companies.
D. It limits both civil and criminal liability against auditors of S. companies.
Answer:A
Auditors in the United Kingdom sometimes include disclaimers of liability in their audit reports. According to the U.S. Securities and Exchange Commission, how effective is this approach to limiting civil liabilities?
A. It has no effect when included in the financial statements of S. companies. B. It effectively caps the damage awards that will be made in S. civil courts. C. It limits who can bring civil action in cases involving the audit of S. companies. D. It limits both civil and criminal liability against auditors of S. companies.