Civil and Criminal Consequences if CPAs/Auditors Fail to Follow Professional Standards

CPA and Professional Standards
Student Name
Institutional Affiliation
CPA and Professional Standards
Some civil liabilities for auditors include liability for the negligence of assistants and liability under the Consumer Protection Act. The auditor is liable for the negligence of assistants. The auditor is professionally entitled to depend on the assistants’ work. However, they are responsible for designing and expressing their opinions on the firm’s financial position and thus face liability due to potential negligence by assistants. Regarding auditor’s liability under the consumer protection act, key points include: the auditor offers his advice or opinion on payment of auditing fees, if any chartered accountant offer advice or opinion contrary to legal provisions or advice not backed by judicial ruling, he could risk being required to pay damages for any loss suffered due to their advice or opinion. Auditors’ criminal consequences include a penalty for a deliberate act of omission or commission and imprisonment for failure to help within the investigations or noncompliance (Dharmasiri et al., 2021).
Certified Public Accountants (CPAs) can limit their liability and prevent legal suits by implementing risk-centered due diligence when serving exis...