Proposed ban on auditor liability limits also targets engagement letter ADR

2005 ◽  
Vol 23 (7) ◽  
pp. 120-124
Author(s):  
Russ Bleemer
Keyword(s):  
Auditor Liability

The Role of Key Audit Matters in Assessing Auditor Liability: Evidence from Auditor and Non-auditor Evaluators

2020 ◽  
Vol 13 (1) ◽  
pp. 35-64
Author(s):  
Thanyawee Pratoomsuwan ◽  
Orapan Yolrabil
Keyword(s):  
Auditor Liability

Trends in independent auditor liability: The emergence of a sane consensus?

1997 ◽  
Vol 16 (4) ◽  
pp. 339-353 ◽  
Author(s):  
John A. Siliciano
Keyword(s):  
Auditor Liability

The impact of audit reforms on objectivity during the performance of non-audit services

2014 ◽  
Vol 29 (3) ◽  
pp. 222-236 ◽  
Author(s):  
Richard G. Brody ◽  
Christine M. Haynes ◽  
Craig G. White
Keyword(s):  
Audit Quality ◽  
Content Type ◽  
Auditor Liability ◽  
Internal Auditors ◽  
External Auditors ◽  
Regulatory Perspective ◽  
External Auditor ◽  
The Impact ◽  
Practical Implications ◽  
Non Audit Services

Purpose – This research aims to explore whether recent audit reforms have improved auditor objectivity when performing non-audit services. Design/methodology/approach – In two separate experiments, the authors tested whether external and internal auditors' inventory obsolescence judgments are influenced by their client's (or company's) role as the buyer or seller in an acquisition setting. Findings – External auditors assessed the likelihood of inventory obsolescence objectively, regardless of their consulting role in the acquisition setting. Internal auditors assessed the likelihood of inventory obsolescence as higher when consulting for the buyer than when consulting for the seller, consistent with the supposition that the buyer would prefer to write-down inventory and negotiate a lower purchase price, whereas the seller would prefer the inventory not be written down. Practical implications – From a regulatory perspective, external auditors may be relying too much on the work of internal auditors if internal auditors' lack of objectivity as consultants extends to their assurance role. Originality/value – This paper extends prior research in the area of internal and external auditor objectivity and is the first paper to include both subject groups in the same experiment. It also addresses the current policy issues that may have a significant effect on audit quality and auditor liability.

Auditor Liability

2015 ◽  
pp. 1-5
Author(s):  
Prem Sikka
Keyword(s):  
Auditor Liability

Auditor liability and excess cash holdings: Evidence from audit fees of foreign incorporated firms

2021 ◽  
pp. 101947
Author(s):  
Deborah Drummond Smith ◽  
Kimberly C. Gleason ◽  
Yezen H. Kannan
Keyword(s):  
Cash Holdings ◽  
Audit Fees ◽  
Auditor Liability ◽  
Excess Cash

Key audit matter and auditor liability: evidence from auditor evaluators in Thailand

2020 ◽  
Vol 21 (4) ◽  
pp. 741-762
Author(s):  
Thanyawee Pratoomsuwan ◽  
Orapan Yolrabil
Keyword(s):  
Design Methodology ◽  
Legal Environment ◽  
Affective Reactions ◽  
Content Type ◽  
Auditor Liability ◽  
Legal Risk ◽  
Different Types ◽  
Peer Evaluators ◽  
Practical Implications

PurposeThis study examines the effects of key audit matter (KAM) disclosures in auditors' reports on auditor liability in cases of fraud and error misstatements using evaluators with audit experience.Design/methodology/approachThe experiment is conducted using 174 professional auditors as participants.FindingsThe participating auditors assess higher auditor liability when misstatements are related to errors rather than when they are related to fraud. In addition, the results also demonstrate that KAM disclosures reduce auditor liability only in cases of fraud and not in cases of errors. Together, the results support the view that KAM reduces the negative affective reactions of evaluators, which in turn, reduce the assessed auditor liability.Research limitations/implicationsThis study did not analyze the setting in which auditors who act as peer evaluators had an opportunity to discuss the case among their peers, which may have affected their judgments.Practical implicationsThe results of KAM disclosures on auditor liability in cases of error and fraud misstatements inform auditors that, different from the auditors' concern that disclosing KAM may increase auditors' legal risk, it tends to decrease or at least have no impact on the liability judgment.Originality/valueThis study contributes to the accounting literature by adding findings on another aspect of KAM in different audit settings, particularly, in the Thai legal environment with different types of undetected misstatements. The current conflicting results on how KAM disclosures affect auditor liability warrant further investigation of this issue in other audit contexts in different countries.

A Crisis of Identity? Juxtaposing Auditor Liability and the Value of Audit

2014 ◽  
pp. 111-131 ◽  
Author(s):  
Christopher Humphrey ◽  
Anna Samsonova
Keyword(s):  
Auditor Liability
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