Respuesta :

What must be proven by a third party to establish common law liability of auditors include:

  • Knowledge the accountant knew the representation was false
  • The accountant intended the third party to rely on the false presentation
  • A false representation was made

It was stated that the auditor is responsible for detecting and reporting fraud, maintaining an attitude of independence, communicating audit results, evaluating the continuity of the client's business, and detecting and reporting unlawful acts by clients.

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