PLEASE ANSWER THE QUESTION BELOW

REVIEW QUESTIONS 5-1 (OBJECTIVE 5-1) Lawsuits against CPA firms continue to increase. State your opinion of the positive and negative effects of the increased litigation on CPAs and on society as a whole. 5-2 (OBJECTIVE 5-2) Distinguish between audit risk and audit failure. Why is there at least some level of audit risk on every audit engagement? 5-3 (OBJECTIVE 5-3) How does the prudent person concept affect the liability of the auditor? 5-4 (OBJECTIVES 5-1, 5-8) Discuss why many CPA firms have willingly settled lawsuits out of court. What are the implications to the profession? 5-5 (OBJECTIVES 5-3, 5-4) What is meant by contributory negligence? Under what conditions will this likely be a successful defense? 5-6 (OBJECTIVE 5-4) A common type of lawsuit against CPAs is for the failure to detect a fraud. State the auditor's responsibility for such discovery. Give authoritative support for your answer. Chapter 5 / LEGAL LIABILITY