The Audit legal obligations

Author: Ramona STORE

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Keywords:audit legal obligations, auditor, audit practice, auditor responsibility, natural law, statutory law, law based on norms, criminal responsibilities, fraud

Abstract:
The purpose of this study is to present the auditors’ legal obligations with the following aspects: who and based on what norms can held liable the auditor, what are the consequences of these actions, what are the practices and the safeguards an auditor can follow in order to reduce the possibility to be suited and which can improve theirs chances to have a successful legal procedures.\r\nThe higher use of the ‚roots of litigation processes” with serious effects on the financial markets „health” determined this endeavor to study this problem and to investigate it – by the current study in order to identify the most effective methods for „prevention and treatment”.\r\nFrom the structure point of view, the paper discuss the auditor’s legal responsibility based on the natural law and on the statutory law provisions, both to his/her clients and to the third parties, the criminal responsibility for fraud and error as well sa the reduce of the possible legal exposure.\r\nThe conclusion of this study is that the current dimension of the auditor responsibilities is highly influenced by the business environment dynamics, by the social values and it is established based on the solutions found by the responsible bodies as reactions to some real cases.\r\n

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