This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 1. Background stock market crash privity not required 2. Auditor's defenses a. immaterial b. loss was not due to error c. due diligence That's the bad news the good news is that there have been few cases 3. Cases a. Bar Chris Case a subsequent event was not thoroughly investigated; audit program was adequate but the senior accepted glib answers from the client. b. Result: i. SAS1 rulings on subsequent events ii. importance of understanding client's business and industry b. Yale Express Case - subsequent discovery of fact...
View Full Document
- Fall '08
- U.S. Securities and Exchange Commission, Securities Act, Chris Case