...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...

... as an alternative method to fight the social and economic cost of fraud. © MCB UP Limited 1995 Corporate culture Ethics External audit Fraud Internal audit Litigation Accounting firms have incurred significant legal expenses over the last few years defending cases filed by third parties...

... Legal matters Liability Litigation It is probably true to say that the auditing profession in Australia, as in a number of other countries, is currently going through a period of crisis. The spate of company collapses, the unforseen amount of litigation against auditors, increasing scrutiny...