Accountants' liability and audit failures: When the umpire strikes out

Research output: Contribution to journalEditorial

Abstract

Although nationwide concern has focused recently on the lawsuit explosion and the growth in damage awards of all sorts, significant reform of the accountants' liability situation seems unlikely. The expectations gap between auditors and financial statement users must be closed first, and the only realistic prospect of doing so requires that audits more accurately reflect the popular understanding of their mission. In so doing, certain conflicts in the critical area of auditor independence must be resolved before significant credibility can be restored. The inability or unwillingness of auditors to provide the audit that investors demand will result in continued expansion of auditors' liability.

Original languageEnglish (US)
Pages (from-to)1-8
Number of pages8
JournalJournal of Accounting and Public Policy
Volume6
Issue number1
DOIs
StatePublished - Jan 1 1987
Externally publishedYes

ASJC Scopus subject areas

  • Accounting
  • Sociology and Political Science

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