Auditors cannot be held liable to their clients for failure to detect material management fraud.

Name: Auditors cannot be held liable to their clients for failure to detect material management fraud.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Auditors can be held liable for failure to detect material management fraud if they were negligent in conducting their audit and if their failure to detect the fraud caused damages to the client. However, the level of liability may vary depending on the specific circumstances of each case.

Auditors Cannot Be Held Liable to Their Clients for Failure