This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese.
26 Jul 2021 / 10:17 H.
IN recent weeks, news outlets reported high-profile legal suits filed against a leading accounting firm in respect of statutory audits carried out by the firm. The legal suits were filed pursuant to alleged negligence, breach of contractual duty and breach of statutory duties.
The damages claimed in these legal suits amounted to billions of dollars, which may cause concern to all auditors. Can the opinions expressed by auditors in statutory audits expose them to civil liabilities?
Roles and duties of auditors
The Companies Act 2016 (CA 2016) requires all companies to appoint an auditor for each financial year, where the auditor has a duty to report to the members of the company on his opinion on the financial statements prepared by the directors of the company.