1. Breach of contract may occur when there is non-performance of a contractual duty. Causes for action against the auditor for breach of contract may include but are not limited to the following
- Violating client confidentiality
- Failing to provide audit report on time
- Failing to discover a material misstatement
2. Remedies for breach of contract include requiring specific performance
- Specific performance of contract agreement.
- Providing for recovery of amounts lost as a result of breach. When specific performance or on injuction is not appropriate, the client is entitled to recover compensatory damages.
The auditor can use the following defenses against breach of contract
- The auditor proofs that the exercised dues professional care and skill in accordance with the contract.
- Contributory negligence was present i.e. both the client and the auditor were involved in negligence
- The client losses were not caused by the breach i.e. the client did not suffer financial loss as a result of auditor‘s negligence.
Wilfykil answered the question on February 23, 2019 at 06:37
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Explain the ways in which an auditor can minimize his potential liability for professional negligence
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February 23, 2019
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February 23, 2019
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February 23, 2019
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Explain the matters that an auditor should take into account at the planning stage of an audit exercise
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February 23, 2019
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Your are currently engaged in planning the audit of the payroll system of Ujenzi Ltd a manufacturing company, for the year ending 30 June 2005,...
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Required:
(a) Explain four ways in, which the use of a computerized payroll system by Ujenzi Ltd, would affect your work as the auditor.
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February 22, 2019
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February 22, 2019
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Outline the respective responsibilities of an entity‘s management and the external auditor with respect to the prevention and detection of fraud and error
(Solved)
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Date posted:
February 22, 2019
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Answers (1)
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Cash in hand and cash at bank are commonly referred to as liquid assets. Because of this liquidity, these assets represent the most vulnerable of...
(Solved)
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Required
(i) State and explain any the audit procedures you would undertake in order to determine whether or not there has been any misappropriation of cash.
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February 22, 2019
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The auditor should prepare working papers which are sufficiently complete and detailed to provide an overall understanding of the audit.
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Date posted:
February 22, 2019
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Answers (1)
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(Solved)
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Date posted:
February 22, 2019
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(Solved)
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Date posted:
February 22, 2019
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State the factors that the external auditor should consider before placing reliance on the work of the internal auditor
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Date posted:
February 22, 2019
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Date posted:
February 22, 2019
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Date posted:
February 22, 2019
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List and briefly explain the main functions of an audit committee
Date posted:
February 22, 2019
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(Solved)
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Date posted:
February 22, 2019
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Outline the ways in which an auditor may be held criminally liable in the course of his audit duties
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February 22, 2019
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Date posted:
February 22, 2019
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Date posted:
February 22, 2019
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(Solved)
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Date posted:
February 22, 2019
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Answers (1)