The Implications of Legal Liability and its Impact on Liability Coverage for the Accounting Profession
Date of Defense
litigation, auditing, auditors
Today, accountants are being sued for business failures at such an alarming rate that it is as if they are viewed as having some magical ability to predict the future. More suits have been filed against accountants in the past 20 years than in the entire history of public accounting. The majority of these are the result of shareholders alleging negligence on the part of accountants who neglected to warn them of impending business failure after performing an audit. The purpose of this paper is to increase the awareness of legal liability for those about to enter the accounting profession. The author suggests reforms such as arbitration and award caps to prevent unnecessary court cases.
Delong, Mary, "The Implications of Legal Liability and its Impact on Liability Coverage for the Accounting Profession" (1986). Honors Theses. 20.
Honors Thesis-Campus Only