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Theoretical and Applied Economics Volume XVIII (2011), No. 9(562), pp. 61-70

Limiting Civil Liability in the Sphere of Business Auditing
Carmen COSTULEANU University “Petre Andrei”, Iaşi ccostuleanu@yahoo.com Ionel BOSTAN University “Al. I. Cuza”, Iaşi ionel_bostan@yahoo.com Emil HOROMNEA University “Al. I. Cuza”, Iaşi emil.horomnea@yahoo.com Marcel COSTULEANU University “Gr.T. Popa”, Iaşi mcostuleanu@yahoo.com Carmen CODREANU University “Petre Andrei”, Iaşi codrcarmen@yahoo.com Abstract. The statutory audit of business entities is represented by the audit of annual financial accounts or consolidated financial accounts, according to the Community legislation transposed in national regulations. Negligence or imprudence in performing the activities related to this type of audit entail special consequences. It is to some of the elements derived from this context that we refer in this paper, especially as there is often the underlying risk for the auditor to be held liable. It is worth noting that one cannot claim several compensations for the same action. Then, the auditor is not jointly liable with the other authors of the illicit actions which have caused damages. On the other hand, limited liability does not apply to the situations when it has been proven that the auditor has breached his professional duties with direct intent. Keywords: auditing contract; insurance; negligence/imprudence in the performance of duties; civil liability; faults; offences; damages. JEL Codes: M14, M41. REL Codes: 5H, 14I, 14K.

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Carmen Costuleanu, Ionel Bostan, Emil Horomnea, Marcel Costuleanu, Carmen Codreanu

1. Introduction Romania, as a full member of the European Union, has to transpose in its own legislation the Directive 2006/43/CE of 17 May 2006 of the European Parliament and Council on statutory audits of annual accounts. As a result, the Government issued the

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