FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W1580592772> ?p ?o ?g. }

• W1580592772 startingPage "11" @default.
• W1580592772 abstract "ABSTRACT This study examines CPAs' awareness of the litigation risk imposed by audit services. Using CPAs from selected states, I compare perceptions of litigation risk to three objective measures of litigation risk. The first measure is an important legal provision of audit litigation which is assumed to influence litigation risk. Litigation activity reported by the Department of Justice are used for the other two objective measures: frequency of litigation and the level of damages. Based on these comparisons, I find that the CPAs are not well informed about the litigation risk they face for audit services. Although CPAs provided perceptions consistent with the allegedly important legal standard, a strong majority of CPAs had perceptions that were inconsistent with the Department of Justice statistics about litigation frequency and damage awards. In each case, the misperceptions followed a systematic pattern. This finding suggests that CPAs may be facing more risk than they thought or incurring more costs than necessary. The finding calls into question the effectiveness of the civil liability system to deter audit improprieties and leads to several questions for future research. INTRODUCTION Audit litigation is an important topic to practitioners and academicians as evidenced by the number of articles in their literature (see Latham and Linville, 1998 and Palmrose, 1997 for a review of the literature). Reinforcing the idea that audit litigation is important to practicing CPAs, the American Institute of Certified Public Accountants (AICPA) and the state societies of Certified Public Accountants labored to ease litigation risk faced by CPAs (von Brachel, 1996). These efforts included successful lobbying of Congress for the passage of the Private Securities Reform Act of 1995 and the Securities Litigation Uniform Standards Act of 1998. The effectiveness of these reforms to curb lawsuits against the accounting profession is still an unanswered question (see Investor Relations Business of February 1, 1999 and March 29, 1999 for reports of increasing securities litigation) which suggests that litigation remains a topic of interest. One issue that has not been addressed in the literature is the accuracy of the CPAs' perceptions of the litigation risk imposed by performing audits. Latham and Linville (1998) discuss the purposes of civil liability and one important purpose is deterrence. By imposing a potential cost through civil liability, the CPA should be reluctant to perform an inappropriate act. However, if the CPA has no understanding of the potential liability or a mistaken understanding of the potential risk, much of the desired deterrence effect could be lost or be counter-productive. The purpose of this paper is to determine if CPAs have accurate perceptions of the liability imposed on them by auditing. The accuracy of the CPAs' perceptions is determined by comparing the perceptions to three objective standards. In comparing perceptions and objective measures of the litigation risk imposed, I find that CPAs have little understanding of the litigation risk present. Although their perceptions about litigation risk correspond to an (allegedly) important legal standard in audit litigation, their perceptions are inconsistent with the measures of litigation severity provided by the Department of Justice. As discussed later, unintended costs could be imposed on the individual CPAs and society by the CPA's misunderstanding of the litigation risk imposed by auditing services. The remainder of this paper is organized as follows. In the next section, I discuss the collection of the perceptions about litigation risk and issues of the research instrument. In the third section, I discuss the determination of objective standards. Also, in this section, I discuss the process for designating perceptions as accurate or inaccurate. In the fourth section, the results of the study are presented. …" @default.
• W1580592772 created "2016-06-24" @default.
• W1580592772 creator A5085776309 @default.
• W1580592772 date "2002-09-01" @default.
• W1580592772 modified "2023-09-23" @default.
• W1580592772 title "CPAs' AWARENESS OF LITIGATION RISK" @default.
• W1580592772 hasPublicationYear "2002" @default.
• W1580592772 type Work @default.
• W1580592772 sameAs 1580592772 @default.
• W1580592772 citedByCount "0" @default.
• W1580592772 crossrefType "journal-article" @default.
• W1580592772 hasAuthorship W1580592772A5085776309 @default.
• W1580592772 hasConcept C121955636 @default.
• W1580592772 hasConcept C144133560 @default.
• W1580592772 hasConcept C154307955 @default.
• W1580592772 hasConcept C162118730 @default.
• W1580592772 hasConcept C17744445 @default.
• W1580592772 hasConcept C199286143 @default.
• W1580592772 hasConcept C199521495 @default.
• W1580592772 hasConcept C199539241 @default.
• W1580592772 hasConcept C2777381055 @default.
• W1580592772 hasConcept C2777834853 @default.
• W1580592772 hasConcept C46304622 @default.
• W1580592772 hasConceptScore W1580592772C121955636 @default.
• W1580592772 hasConceptScore W1580592772C144133560 @default.
• W1580592772 hasConceptScore W1580592772C154307955 @default.
• W1580592772 hasConceptScore W1580592772C162118730 @default.
• W1580592772 hasConceptScore W1580592772C17744445 @default.
• W1580592772 hasConceptScore W1580592772C199286143 @default.
• W1580592772 hasConceptScore W1580592772C199521495 @default.
• W1580592772 hasConceptScore W1580592772C199539241 @default.
• W1580592772 hasConceptScore W1580592772C2777381055 @default.
• W1580592772 hasConceptScore W1580592772C2777834853 @default.
• W1580592772 hasConceptScore W1580592772C46304622 @default.
• W1580592772 hasIssue "3" @default.
• W1580592772 hasLocation W15805927721 @default.
• W1580592772 hasOpenAccess W1580592772 @default.
• W1580592772 hasPrimaryLocation W15805927721 @default.
• W1580592772 hasRelatedWork W1480120799 @default.
• W1580592772 hasRelatedWork W1601660351 @default.
• W1580592772 hasRelatedWork W160881863 @default.
• W1580592772 hasRelatedWork W167087571 @default.
• W1580592772 hasRelatedWork W1979092177 @default.
• W1580592772 hasRelatedWork W2067527500 @default.
• W1580592772 hasRelatedWork W2069194818 @default.
• W1580592772 hasRelatedWork W2091846983 @default.
• W1580592772 hasRelatedWork W2168578407 @default.
• W1580592772 hasRelatedWork W2321198881 @default.
• W1580592772 hasRelatedWork W2364918959 @default.
• W1580592772 hasRelatedWork W236580107 @default.
• W1580592772 hasRelatedWork W2391665578 @default.
• W1580592772 hasRelatedWork W25636705 @default.
• W1580592772 hasRelatedWork W2606176027 @default.
• W1580592772 hasRelatedWork W2727333531 @default.
• W1580592772 hasRelatedWork W2774818436 @default.
• W1580592772 hasRelatedWork W2943141187 @default.
• W1580592772 hasRelatedWork W3023187935 @default.
• W1580592772 hasRelatedWork W3124212470 @default.
• W1580592772 hasVolume "6" @default.
• W1580592772 isParatext "false" @default.
• W1580592772 isRetracted "false" @default.
• W1580592772 magId "1580592772" @default.
• W1580592772 workType "article" @default.