The auditor is responsible for the report he issues to his client, the audited company, and to all users of the financial information of the same. The breadth of its responsibility derives from the fact of having a social mandate, consisting of issuing its opinion on the company's annual accounts.
The professional responsibility of the auditor is defined by the Accounts Audit Law (LAC), in its Section 2, which states, “The auditors and audit companies will be liable for damages and economic damages arising from the breach of their obligations”
The civil responsibility of the auditors and the audit companies will be required proportionally to the direct responsibility for the economic damages that could be caused by their actions.
The civil responsibility of the auditor is not determined by the fact of not having detected errors or irregularities, but is derived only in the event that he has not adequately fulfilled his obligations.
That is, if there is a problem in a given area, the auditor will be responsible if he has not properly analyzed and verified the reasonableness of that area. But the auditor will not be liable if he has considered the risk, has properly planned the work to be done and it has been conveniently developed.
The action to demand the auditor's responsibility prescribes 4 years after the date of issuance of the audit report.
The auditor's civil liability arises from the breach of his professional obligations and, as we have indicated, may be demanded proportionally to the economic damages that may have been caused by his professional performance. Civil liability is enforceable in a personal and individualized manner to the auditor, although in the case of audit companies, they will respond jointly and severally.
In cases where damage has been caused and there is fraud, that is to say that the deceased has the manifest will to commit a criminal act, criminal liability would be additionally derived.
The auditor is responsible for issuing its audit report on the annual accounts, having properly performed its planning work, analyzing the level of internal control of the company and the relevant work of reviewing the financial information with sufficient scope to detect irregularities significant, if they existed.