Five Things Financial Statement Users and Litigators Should Know

Executive Summary Fraud in company financial statements is a problem that affects users in most countries today, and some believe that this problem is only getting worse. While independent auditors render opinions that give investors confidence in the accuracy of a company’s reported financial performance, when fraud is uncovered, resulting litigation often focuses on the…

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Five Strategies for Audit Committees to Rebuild Public Trust and Confidence in Financial Reporting

Management fraud and auditor failure to find that fraud have received the greatest share of attention to date; and relatively less attention has been directed at the role of audit committees in these financial reporting failures. The current cycle of financial reporting scandals has already caused further attention to be given to the issue of…

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Litigation Risk

Auditor liability and malpractice, stemming from allegations of failure to appropriately respond to clients’ risk of material misstatements due to fraud, is an area ripe for litigation, specifically when fraud and material misstatements are subsequently revealed to have affected the financial statements.  Although a “clean” audit report is not an absolute guarantee of accuracy, auditors…

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