How does the principle of “joint and several liability” affect auditors in countries where it is applied?
A. This limits civil liability to only those people who conducted the audit negligently.
B. All partners in the accounting firm can be personally liable for the negligence of any one partner.
C. All audit partners are liable for the actions of the firm only up to the level of their investment in the firm.
D. It creates limited liability for auditors accused of wrong-doing by their clients.
Answer:B
How does the principle of “joint and several liability” affect auditors in countries where it is applied?
A. This limits civil liability to only those people who conducted the audit negligently. B. All partners in the accounting firm can be personally liable for the negligence of any one partner. C. All audit partners are liable for the actions of the firm only up to the level of their investment in the firm. D. It creates limited liability for auditors accused of wrong-doing by their clients.