HYPERION ECONOMIC JOURNAL

Hyperion University of Bucharest
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HYPERION ECONOMIC JOURNAL

January 2023
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Legal Issues Concerning Auditor - Client Relationship

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Authors:
  • Nicolae MĂGDAȘ, PhD, Affiliation: Babeș - Bolyai University of Cluj - Napoca, Faculty of Economics and Business Administration, Romania;
Pages:  3 : 17
Abstract:

Based on the contractual clauses and not only, the legal perspective of the relation is also very much of interest when liability occurs. The aim of this paper was to analyze the different types of legal issues concerning the auditor client relationship. As beneficiaries of the audit services, clients tend to resort to the means that aim to attract auditor's liability in case unprofessionalism or misconduct is of reasonable presumption from client's perspective. Moreover, the auditor can be the subject of different type of liability, enforced by the state, the criminal liability, as opposed to the civil liability that could be enforced by the client. On the other hand, the natural reaction of the auditor is to make use of legal provisions and clauses meant to protect himself by limiting liability. Therefore, almost every aspect of the auditor-client relationship also has a legal perspective as the very first interactions during the audit mission are predetermined by the contract signed by the two parties.

JEL classification:  M42, M48, M40

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