chapter4_GE.docVIP

Auditing and Assurance Services, 14e (Arens) Chapter 4 Legal Liability Considerations for Auditors Learning Objective 4-1 1) Discuss three major factors that have contributed to the recent increase in the number of lawsuits against auditors and the size of awards to plaintiffs. Answer: Major factors include: ? The growing awareness of the responsibilities of public accountants by users of financial statements. ? An increased consciousness on the part of the Securities and Exchange Commission regarding its responsibility for protecting investors interests. ? The complexity of auditing a