Professional liability
Professional liability is the potential legal responsibility arising from a practitioner’s work, determined under applicable law and the engagement circumstances. A negligence claim generally involves questions such as duty, breach, causation and loss, but their exact application and possible defences depend on jurisdiction. Ethical and disciplinary consequences are separate matters.
Worked example
An investor sues an auditor after relying on audited accounts; the court considers whether the auditor owed that investor a duty and whether a breach caused the loss.
Common mistake
A failed business or a missed misstatement alone does not establish negligence or liability in every jurisdiction.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |