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Auditor Liability
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Throughout the Eighties and into the Nineties the question of liability has become more prevalent in the practice of public accounting. Recently, the AICPA has been lobbying for liability reform in cases involving negligence or malpractice by public accountants. Opposition to this lobbying has come from consumer advocacy organizations, trial law ....
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....element of risk at the firm level. The threat of litigation provides public accountants with a deterrent against negligent work. Finally, the results of lawsuits cause the profession itself to implement new standards. (Bolinger p.54)
The AICPA and its supporters have developed their argument based on continued liability's likely effect on the prof.... |
| Word count: 2099 |
Page count: 8 |
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