11390. AUDITOR'S LEGAL LIABILITY. Following an overview of the concept auditor's legal liability, including a review of liability exposure under both federal securities laws and common law theories, the analysis looks at the steps which can be taken to reduce auditor's liability. A concluding section briefly discusses what the individual auditor (CPA) can do to limit his or her liability. 10 pages, 32 footnotes, 21 bibliographic sources.