Under which legislation are auditors always liable for mistakes in reports?

The liability of auditors for mistakes in their reports is primarily governed by the Companies Act 2006. This legislation establishes a framework for the responsibilities of auditors when conducting audits of companies. Under this act, auditors are required to provide an opinion on the financial statements, and if they fail to adhere to the standards set forth, resulting in significant errors or misstatements, they can be held liable for damages.

The Companies Act 2006 has specific provisions that outline the duties and obligations of auditors, making it clear that they must exercise due diligence and professionalism in their work. Failure to fulfill these obligations can lead to legal repercussions, including financial liability. This significant accountability is important for ensuring the integrity of financial reporting and maintaining public trust in financial statements.

The other legislation mentioned does not have the same comprehensive scope or direct application to audit liability. For instance, the Partnership Act 1890 primarily addresses issues related to partnerships and does not directly concern auditors' responsibilities. The Business Law Act 1985 focuses more broadly on commercial practices but does not specifically address auditors' liabilities in relation to their reports. The Accountancy Fees Act 1997 primarily deals with issues of payment for services and does not create a framework for liability related to audit errors. Thus, the