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Use the primary legal concepts and terms concerning accountants’ liability as a basis for studying legal liability of auditors.

ASSIGNMENT

Use the primary legal concepts and terms concerning accountants’ liability as a basis for studying legal liability of auditors.

1.State several factors that have affected the incidence of lawsuits against CPAs in recent
years.

2. Distinguish between business failure and audit risk. Why is business failure a concern to
auditors?

3. Distinguish between fraud and constructive fraud.

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