Audit I Legal Liability of the Auditor

Audit I Legal Liability of the Auditor - Legal Liability of...

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Legal Liability of the External Auditor Chapter 20 of the Messier Text
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20-2 Historical Perspective 1970 Claims against auditors were relatively uncommon before the 1970’s. 1990 1980 Due to a slump in the economy in the early 1970’s and the recession of the 1980’s, it became more common for auditors to be sued. The recession of 1990-1992 led to another upsurge in litigation against auditors. The profession pushed for litigation reform, and in the 1990’s Congress passed litigation reform acts that provided some limits to auditor liability and made it more difficult to sue auditors successfully.
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20-3 Historical Perspective 1970 Claims against auditors were relatively uncommon before the 1970’s. 1990 1980 Due to a slump in the economy in the early 1970’s and the recession of the 1980’s, it became more common for auditors to be sued. The recession of 1990-1992 led to another upsurge in litigation against auditors. 2002 Due to several high-profile frauds, Congress refocused attention on auditors in the Sarbanes-Oxley Act of 2002.
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20-4 Overview
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