International Auditing Standards in the United States, 2nd Edition

CHAPTER 2

The International and U.S. Audit Environments

This chapter discusses factors influencing legal liability of auditors in the United States and abroad. This chapter focuses on:

• legislation and law in the United States that could affect the liability of auditors;
• legislation internationally that could affect the liability of auditors;
• liability to third parties, criminal liability under statutory law in the United States and in Europe;
• important differences in legislation that could affect the liability of U.S. auditors working in a European environment.

Introduction

Many parties rely on audited financial statements. The parties include, but are not limited to, stockholders, trade creditors, bankers, customers, employees, state governments, ...