Auditing failures that result in litigation

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Most auditing failures centre on circumstances where the auditor has expressed an unqualified audit opinion on a financial report that was materially misstated and did not comply with the relevant accounting standards.

In these circumstances the auditor either failed to obtain sufficient, appropriate audit evidence to identify a material error or obtained evidence to identify the error but ignored or misinterpreted that evidence.

The Australian Auditing Standards (ASAs) require an auditor to undertake various procedures that if not performed appropriately can result in the auditor being exposed to litigation.

In this publication, we set out common auditing failures that expose auditors to litigation and the relevant ASAs outlining the auditor’s obligations in relation to these failures.

Please check out our downloadable document.