Discuss how audit and other opinions may be affected by limiting auditors liability?

Limiting auditors’ liability can have a significant impact on audit and other opinions. When auditors’ liability is limited, it can reduce the risk of lawsuits and claims against auditors, which can help to reduce the cost of audits. However, it can also lead to a reduction in the quality of audits, as auditors may be less likely to identify and report on issues that could lead to legal action. This is because auditors may feel that they are less likely to be held responsible for any issues that arise. Additionally, limiting auditors’ liability can also affect the credibility of audit opinions. If auditors are seen as having limited liability, it may be more difficult for stakeholders to trust the opinions that they provide. This could lead to a reduction in confidence in the financial statements of companies, which could have a negative impact on their reputation and financial performance. Therefore, it is important to strike a balance between limiting auditors’ liability and ensuring that they are held accountable for their actions.