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Auditor Liability
Part 1 of Essay
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 ....
Part 2 of Essay .... evidence.
Opponents of liability reform rely heavily on an idealistic
constitutional argument as well as an economic argument to foster their
point. The main components of their argument are as follows: Limiting
recovery of loss has a detrimental effect on those which are harmed by
alleged negligence. The cost of liability is reasonable when compared to
total revenues, and in light of a CPA's public responsibility. Indemnity
insurance spreads risk in the aggregate therefore removing the element of
risk at the ....
Word count: 2093 | Approximate pages: 8
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