...Dahlia Robinson; Thomas Smith; James Devin Whitworth; Yiyang Zhang Purpose This study aims to investigate whether accounting-related litigation is associated with a break in the client’s earnings string and the auditor’s response to a break in the earnings string. Design/methodology/approach...

...] . This formal filing is a public announcement. Although allegations and related penalties may vary, the announcement of an SEC investigation can lead to a negative market reaction and thus expose auditors to litigation (Feroz et al., 1991). Specifically, an SEC investigation signals the possibility...

...Jerry Sun; Guoping Liu Purpose The purpose of this paper is to examine whether client‐specific litigation risk affects the audit quality differentiation between Big N and non‐Big N auditors. Specifically, the authors examine whether higher quality audits of Big N auditors relative to non‐Big...

... extend the knowledge of the effects of litigation pressure on audit quality. Additionally, this paper helps address the question of how large‐scale audit failures witnessed at the beginning of the century have impacted audit firm conservatism. © Emerald Group Publishing Limited 2010 Auditing...

... to understating expenses, overstating profits, and even to fraud, litigation, and mounting professional liability risk. Develops a forecasting model of mixed cost error estimates, or error difference (ED). MAs can reduce the risk of litigation and professional liability by including such an ED in the internal...

... Litigation Accounting firms have incurred significant legal expenses over the last few years defending cases filed by third parties which claim that they lost their investment because of the auditor′s inability to detect fraud and a related material misstatement. The Big Six alone between 1990 and 1993...

.... There is also civil liability imposed on auditors in relation to the preparation of prospectus documents. This is imposed by CL ss.1005, 1006 and 1009. Auditors can be relieved of liability if they can establish either: © MCB UP Limited 1994 Auditors Australia Legal matters Liability Litigation...