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doc82UnderstandthelitigiousenvironmentinwhichCPAspractice.Theyareliabletotheirclientsfornegligenceand/orbreachofcontractshouldtheyfailtoprovidetheservicesornotexerciseduecareintheirperformance.Auditprofessionalshavearesponsibilityundercommonlawtofulfillimpliedorexpressedcontractswithclients.Explainwhythefailureoffinancialstatementuserstodifferentiateamongbusinessfailure,auditfailure,andauditriskhasresultedinlawsuits.Itoccurswhenabusinessisunabletorepayitslendersormeettheexpectationsofitsinvestorsbecauseofeconomicorbusinessconditions.，大小：74.0 KB