Audit, Assurance and Compliance: Auditors and Legal Liability

Audit,
Assurance and
Compliance-
Auditors and
Legal Liability

Table Of Content
 Introduction
 Case scenario
 Damages and penalties
 Relevant issues and penalties
 Root causes of the penalties
 Problem, mistakes and misrepresentation
 Recommendation
 Conclusion
 References

Introduction
Audit is defined as systematic and independent examination
of books of accounts which includes vouchers, documents,
all relevant statutory records for the purpose of finding the
performance of the company that whether presented report
is true and fair or not.

1) Provide a brief description of the key events and the factual
issues behind the case.
The case was related with Deloitte and Livent. This case took place in Canada,
where Supreme Court of Canada decided that there is the professional
negligence by the auditor of Deloitte. Here, it was found that in year 1997-
1998, the director of Livent controlled the auditor of their company where it
was found that financial report was more solvent then which it shown in the
records.