Paper P7: Auditor liability

The issue of auditor’s liability is included in the syllabus for Paper P7, Advanced Audit and Assurance. Candidates need to understand and apply the principles of establishing liability in a particular situation, as well as being able to discuss the ways in which liability may be limited. This podcast considers the current legal position of auditors in the UK. It also discusses the impact on the competitiveness of the audit market and some of the methods available to limit exposure to expensive litigation.