Legal obligations of the auditor to the client and third parties (Comparative study (

Abstract

The auditor is considered one of the fundamental pillars of the modern economic environment, as they play a crucial role in enhancing confidence in financial reports and protecting the interests of related parties, whether the contracting client or third parties affected by the outcomes of their work. This research aims to examine the legal obligations imposed on the auditor toward the client on one hand, and toward third parties on the other, in light of national laws (such as the Iraqi Civil and Commercial Codes and Companies Laws), and to compare them with certain comparative legislations, such as the French and Egyptian systems.

The study also seeks to clarify the legal nature of the relationship between the auditor and the client: is it purely contractual in nature, or does it entail a special type of professional obligation? Moreover, can third parties hold the auditor liable based on tort rules if damage occurs due to the auditor’s fault or negligence?

This research adopts a comparative analytical approach through the analysis of relevant legal texts, judicial precedents, and doctrinal opinions. The study concludes that the auditor’s obligations are no longer confined to the contractual relationship but extend, in specific cases, to third parties. This expansion imposes precise professional duties and responsibilities on the auditor, requiring a high level of caution and professional integrity. The research recommends the unification of legal provisions governing these responsibilities and the expansion of legal protection for affected third parties, to achieve a balance between the auditor’s professional freedom and their legal accountability.