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Unformatted text preview: Under what source of law was the suit brought? 48% SEC Act of 1934 18% SEC Act of 1933 22% State Law 5% RICO Legal Liability: Client Characteristics What client characteristics are associated with future lawsuits against their auditors? lower liquidity poorer stock performance higher leverage lower market to book ratio higher incident of management changes higher frequency of qualifications audited by larger firms auditors employed a less structured approach audited longer by the same firm or first year audit audit fee represents a larger part of total audit firm...
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- Fall '08
- Accounting, Financial audit, Lys, Thinking Corner