When the client and the auditor are both sued and judgment is rendered against both,the auditor will be required to settle the entire judgment if the client is bankrupt.Which of the following is a representation of the above?
A)Private Litigation Reform.
B)Joint and several liability statutes.
C)Comparative fraud.
D)The Securities Acts.

Question

Quizplus · Accepted Answer

Joint and several liability statutes hold both the client and the auditor responsible for any damages resulting from the audit, and if the client is bankrupt, the auditor will have to settle the full judgment.

When the Client and the Auditor Are Both Sued and Judgment