CHAPTER 7

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 Hi assalamualaikum dan salam sejahtera!

Kami daripada group 7 kami akan membentangkan topik 7
AUDIT ISSUES & LEGAL LIABILITIES so stay tuned! 


▶️ Legal liabilities is considered to be one of the most important spheres in the accounting profession as it touches on the effectiveness and realiability of the work performed from the perception of customers and third parties.





Understand the nature of Audit issues and legal liabilities.
For more information do watch the video above. 


  ~QUESTIONS~


Group 1 - Define fraud
Group 2 - Give the type of fraud
Group 3 - Discuss each types of liabilities
Group 4 -  Give the definition of legal liabilities
Group 5 - What is liability to third party
Group 6 - Give the factors that help to minimise the auditor’s liabilities
Group 8- Differentiate between fraud and error




Comments

Four Point O said…
1)Employee embezzlement
2) vendor fraud
3) customer fraud
4) management fraud
5) investment scams and others customer frauds
February 16, 2020 at 7:38 AM
Group 5 said…
Liability to third parties
-Not all suits brought to an auditor are from a direct client
-Third parties can also sue an auditor for fraud, in which case a contract is
necessary.
- In order for third party to prevail in a case, there are a number of things they
must prove:
1. the third party must prove that the auditor had a duty to exercise due care.
2. the third party must prove that the auditor breached that duty knowingly,
3. the third party must prove that the auditor's breach was the direct reason for
the loss.
4. the third party must prove that they suffered an actual loss
February 16, 2020 at 6:58 PM
One Soulz🔥🤩 said…
Fraud is defined as the intentional false representation or concealment of a material fact for the purpose of inducing another to act upon it to his or her injury.
February 16, 2020 at 7:10 PM
Group 4 said…
Obligations under law arising from civil actions (torts) or under contract. Legal liability can only be decided by courts even if the settlement is made out of the court by mutual agreement. Liability insurance normally covers only the liability arising from torts and not from the contractual obligations
February 16, 2020 at 7:14 PM
HOBII said…
Fraud refers to all grants information or opinions to financial accounting by someone. Error refers to to offense by an inadvertent act. Fraud is an intentional act to after financial information.. Error is unintentional act or without intention.
February 16, 2020 at 7:18 PM
4FlatToBe said…
LIABILITY TO CLIENT
Case:Wilde adothera Vs cape and Dalgeish
failure to disclosure a defalcation & negligence in the condict of audit
LIABILITY TO THIRD PARTY
Case:Ultramares Vs touche& co.Fraud
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The auditor giving false statement about the company financial
FRAUD OR CRIMINAL LIABILITY
Case:kingston vs cotton mills
February 16, 2020 at 7:23 PM
Gp six said…
Give the factors that help to minimise the auditor’s liabilities
- the profession response to legal liability
- protecting individual CA's from legal liability
February 16, 2020 at 7:28 PM
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