My undergraduate auditing classes this semester had as their first assignment a brief search of what information they could find (via, say Google) when they plugged the words “auditor liability” into a search engine.
Most of their findings dealt with issues in Europe.
While Europe seems to be more active in trying to restrain legal liability for auditors, recent headlines in the US proclaim “Consumer anger, lawsuits, push (industry) to change, as Congress considers legislation to crack down…” Banks are the current bad boys, but it’s easy to recall numerous other industries that have filled the same role, including sports, automakers, and alas, accountants.
The spectacle of scandals in the US and Europe turned up the heat on the growing reform movement, both in trying to harmonize accounting standards and corporate governance.
See full Article.
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