Presentation speech.docx - o Researchers based their...

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o Researchers based their hypotheses on the assumption that jurors will use counterfactual reasoning o Counterfactual reasoning is defined as a psychological concept whereby individuals demonstrate a tendency to create alternative to events that have already occurred o In this scenario, jurors would consider what would have happened if the audit team did not outsource and/or offshore their work o Creates a perceived level of responsibility on the audit firm to ensure quality work is produced o If the quality is not up to standard because they outsourced and/or offshored their work, jurors would have reason to penalise them more harshly, because they would consider the fact that the audit company could have completed the work themselves o This has led to the four hypotheses about damages o Damages are split into two types: compensatory and punitive damages o Compensatory damages are designed to compensate the plaintiff for the loss sustained o Punitive damages are designed to punish the defendant

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