Final answer:
Auditors can be held liable under criminal law and civil law. In criminal law, the government charges a person with a crime, while in civil law, private parties bring disputes to court.
Step-by-step explanation:
Auditors can be held liable under two classes of law: criminal law and civil law.
Under criminal law, the government charges a person with a crime and the case is brought to court. If found guilty, the person may face punishments such as serving jail time.
In civil law, private parties bring disputes to court, alleging harm or injury committed by another party. In this case, auditors may be held liable for damages. The standard of proof in civil cases is lower compared to criminal cases.