Consider Whether Your Outside Consultant/ Auditor Has A Duty to Disclose Environmental, Health and Safety Issues to Regulators

December 1, 2011
Neil S. Witkes
Association of Corporate Counsel's "Green-house Counsel"

Environmental, health and safety professionals who function as auditors are paying increasing attention to whether they may be exposed to liability if their corporate clients do not timely or fully disclose adverse conditions. And if an auditor feels exposed to liability for a failure to disclose, how can in-house counsel be sure that they receive proper advice about what must be disclosed, or ensure that their auditors won’t independently disclose adverse conditions to regulators? The most-effective way to address these issues is to establish in advance clear requirements so that the auditor will not feel exposed to liability over the manner and timing of disclosure, which is the company’s right to determine.

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