Auditors’ Liability for Fraud. Auditors may be liable to third parties for fraud in several ways.
Required:
a. Identify auditors’ liability for fraud to third parties.
b. Distinguish between fraud and constructive fraud.
c. What is auditors’ liability for constructive fraud to third parties?
d. In your opinion, is auditors’ liability to third parties for fraud and constructive fraud appropriate (or “fair”)?
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