Auditors' Liability

Auditors' liability is currently a widely discussed topic in many legislations. At the centre of this discussion is on the one hand the liability to the audited company and caps thereto. On the other hand, third party liability in favour of people who relied on the results of (as it turns out) incorrect audits touches a number of fundamental questions of tort law. If a third party can claim compensation, the practically important question of limits must be answered. A dramatic increase of the maximum liability amounts as well as the admission of unlimited liability causes difficulties with insurers.

This project has dealt with the questions of liability for losses of the audited company and third parties, but also with liability insurance problems and especially the premium structure. The comparative legal research has covered Austria, England, Germany and Italy. A separate chapter deals with topics related to liability insurance. Furthermore, a report by two auditors on the process of auditing has been included. A comparative report draws conclusions in order to solve pending problems.