Gross negligence

Gross negligence is the reckless disregard for one’s professional responsibilities, or of the consequences to other parties. This level of negligence is far below the ordinary standard of care, and is considered worse that the standard of care that even a careless person would follow. For example, a clear failure to follow generally accepted auditing standards in the conduct of an audit would be considered gross negligence. If a determination of gross negligence is found during a legal proceeding, the plaintiff can be awarded punitive damages in some instances.

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Guide to Auditor Legal Liability