To avoid successful allegations of negligence, there are a number of key mechanisms that the auditors should follow:

• The firm’s system of quality management should be followed.
  Ensure that evidence is available to demonstrate that auditing standards were being followed and ethical requirements have been met.
• Effective planning of assignments, including the assignment of sufficient staff with the appropriate skills and training, as well as effective direction of resources during the assignment.
• The use of appropriate audit programmes and checklists to ensure appropriate focus and effective documentation and capture of evidence.
• Review of business and audit risks. This may indicate longer-term viability problems, with significant business risks that should be managed.
• Regular technical training and updating of all staff and proper briefing.
• Direction, supervision, and review of audit work.
• Consultation should be undertaken where necessary, for example, on contentious matters.
• Final review of the financial statements and audit documentation to determine that the audit opinion to be issued is appropriate.
• Professional indemnity insurance would provide insurance protection should the company be faced with successful legal action.

These measures, implemented at the firm level, by professional bodies through standard-setting and training, and by governments through regulation, can reduce the incidence and size of negligence claims against auditors.