Exhibit 9-21 presents cross-country differences in auditor liability by country and audit firm. Required: Does the incidence
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Does the incidence of liability cases vary more by country or by auditor? In what countries is auditor litigation most frequent? Less frequent? Why? What are the implications for doing financial analysis in the 12 countries presented? Are relatively high levels of auditor litigation good or bad for financial statement users? Present reasons for your answer.
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