Liability Crisis Threatens Auditors Lawsuits Multiply against Accounting Firms as Regulators Dig into Fraud, Bankruptcy Cases
David C. Walters, writer of The Christian Science Monitor, The Christian Science Monitor
THE sedate accounting profession is becoming a risky business.
A series of court decisions this year has put the financial viability of the Big Six accounting firms in jeopardy.
When businesses fail, investors and regulators often find that the company's auditor is the only solvent party remaining. In several recent cases, injured parties have sued the auditor for damages. Recent judgments and settlements include:
* Ernst & Young's historic $400-million settlement with federal regulators for its inadequate audits of four bankrupt thrifts.
* Coopers & Lybrand's $95-million settlement of claims for its allegedly poor audits of the books of MiniScribe …
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Publication information: Article title: Liability Crisis Threatens Auditors Lawsuits Multiply against Accounting Firms as Regulators Dig into Fraud, Bankruptcy Cases. Contributors: David C. Walters, writer of The Christian Science Monitor - Author. Newspaper title: The Christian Science Monitor. Publication date: December 28, 1992. Page number: 9. © 2009 The Christian Science Publishing Society. Provided by ProQuest LLC. All Rights Reserved.
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