2. Distinguish between common-law liability and statutory liability for auditors. What is the basis for the difference in liability?
5. Describe the possible entities that may sue an auditor and the possible reason for a lawsuit.
14. How has the Sarbanes-Oxley Act affected the legal liability of accountants and auditors?
15. Some auditors claim that increased exposure under Section 404 of SOX creates a litigation environment that is unfairly risky for auditors. Do you think that the inability of auditors to detect a financial statement misstatement due to gross deficiencies in internal controls over financial reporting should expose auditors to litigation? Why or why not?
16. Should Section 302 of SOX be broadened to establish legal liability for others in the certification process in addition to CEOs and CFOs? Explain.
Mintz, Steven; Mintz, Steven. Ethical Obligations and Decision-Making in Accounting: Text and Cases (Page 371). McGraw-Hill Higher Education. Kindle Edition.
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