AUDIT-LAW.EU

CAN AN AUDITOR BE LIABLE TO THIRD PARTIES?

The WORLD OF AUDIT from a legal perspective.

Are third parties allowed to rely on audits of published financial statements?

Proof of reliance/proximity/causal link is a legal requirement in almost every jurisdiction. Is there a sufficient link between the author and the user of the audit report.

To rely on an audit report, a LINK ("Causal link" or "Proximity") is needed.

Proof of reliance on the audit report is a legal requirement for any third party to claim the auditor's liability. Auditors can be made aware that a third party is relying on their audit report - what are the consequences?

• Civil law, continental case law

  • Netherlands

• UK case law

• US case law

• Australian case law