10 Points Question 12 How does the prudent person concept affect the liability of the auditor? The prudent person concept states that a person is responsible for conducting a job in good faith and with integrity. A but is not infallible. Therefore, the auditor is expected to conduct an audit using due care, but does not claim to be a guarantor or insurer of financial statements. The prudent person concept states that a person is responsible for conducting a job in good faith, integrity, and with B qualifications and attention that prevents errors. Therefore, the auditor is expected to conduct an audit using such due care that they can guarantee the accuracy of the financial statements. The prudent person concept stately that third parties can confidently rely on the independence of the auditors in their work. However there is liability to the auditors if they hide their lack of independence or they mislead the third parties. The prudent person concept states that auditors are responsible for the accuracy of the financial statements that are prepared, but only based on his or her good faith. Therefore, the auditor must keep up with accounting standards to ensure compliance