01-09-2005, 08:42 PM
One can implement different controls to minimise auditors liablity, there is a long list of controls.
1. Get a copy of letter of engagement signed by the client so everybody knows what is expected out of the audit.
2. Personally, I have implmented "limitation of Auditors liablity clause" in the Engag. letter, which is a multiple of Audit fees. Any Good solictor can help you in that.
3. No partner and staff should say a word about audit client in public. I cant remember the legal case but its there.
4. Dont rely on the PI Cover. During my previous job we have had the experience dealing with PI claim and take my word, insurance company will make it the hardest thing possible on the face of the earth to get money out of them.
5. Sensitive audits must be cold reviewed or hot reviewed by independent professionals.
1. Get a copy of letter of engagement signed by the client so everybody knows what is expected out of the audit.
2. Personally, I have implmented "limitation of Auditors liablity clause" in the Engag. letter, which is a multiple of Audit fees. Any Good solictor can help you in that.
3. No partner and staff should say a word about audit client in public. I cant remember the legal case but its there.
4. Dont rely on the PI Cover. During my previous job we have had the experience dealing with PI claim and take my word, insurance company will make it the hardest thing possible on the face of the earth to get money out of them.
5. Sensitive audits must be cold reviewed or hot reviewed by independent professionals.
