Question: External auditors will be liable to the client as well as the third party who have relied on the financial statements upon which they expressed

External auditors will be liable to the client as well as the third party who have relied on the financial statements upon which they expressed an opinion. Therefore, it is necessary for external auditors to exercise professional care when carrying out audit services. However, there is no general standard for the expected level of skill and care required for carrying out an audit assignment.

a. Explain various benefits of an auditing services and how can the external auditor maintain a reasonable standard of professional care and in an action for negligence against an auditor, what is a prove that need to provide by the client?

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