Explore legal liabilities involved in the attestation engagement. Have you often wondered why investors sue the external auditors when massive fraud negatively affects the stock of a public company up to and including bankruptcy?
Often when financial fraud is discovered, shareholders attempt to recover their losses by suing the external audit firm for negligence in not discovering the fraud earlier during a routine attestation engagement.
Discuss whether PRIVITY and near PRIVITY is the same as ordinary negligence by including two to four legal liabilities associated with these terms.