Auditors of a Public Company May Face Unlimited Liability to Investors

Multiple Choice

Auditors of a public company may face unlimited liability to investors who may be a worldwide class of potential plaintiffs. What do the courts do to limit such responsibility in negligence?

A) They limit damages to the cost of the audit fees.
B) They make auditors liable only for gross negligence
C) They limit the scope of duty.
D) They make it very difficult to prove causation.
E) None of the above