Auditor's Liability and Methods for its Limitation

The liability of the financial auditor has to be treated distinctively based on his relationship with the audited entity: internal auditor or external auditor. The logic behind this aspect results from the fact that, based on its relationship with the audited company, the liability has its source either in the Labour law, in what concerns the internal auditor, or it is a contractual liability, in case of the external auditor, even in the situation when this engages in internal auditing work through a contract. In both cases, the sanctions applied by the professional bodies to which they belong are applicable. The liability of the financial auditor is distinguished in categories as disciplinary, administrative, civil and criminal, the auditors having at their disposal methods to limit the liability, methods that will be displayed in the paper. This paper is concerned with the liabilities that the financial auditors can have, distinguished based on whether they are internal or external to the audited company, using in the analysis of the topic the method of deduction and induction, starting from the content analysis of the legislation and regulations in force. The role of this article is not only to present the situations which can attract the liability of the financial auditors and the types of liabilities, but also to support them with a presentation of and methods for limiting the liability, determined with the help of an analysis of these liabilities, and to protect them from a professional point of view.