The Restatement of Torts is a legal compendium issued by the American Law Institute. This compendium is relied on by courts in many jurisdictions as the basis for legal rulings. Under the Restatement of Torts, courts have ruled that negligent auditors can be held liable to unknown third parties if those parties belonged to a known group of financial statement users who the auditors were aware would likely rely on the audited financial statements. If this legal principle had been invoked in the Hochfelder case, would the defrauded investors have been successful in pursuing a negligence claim against Ernst & Ernst under the common law? Why or why not?
Answer to relevant QuestionsDo you believe that Anton Nikolov has dealt with his concerns regarding Elizabeth Wallace appropriately? Did he behave ethically in discussing that matter with Julius Shen? Defend your answer.A key issue in the overtime lawsuits is whether audit staff below the position of audit senior requires close supervision and have the ability and authority to exercise “independent discretion and judgment.” Do ...Do the major international accounting firms have a responsibility to ensure that their individual national practice units provide independent audit services that are uniform worldwide? Defend your answer.Identify the specific risks that the Somalia engagement posed for PwC as a firm. Do you believe that PwC properly considered and mitigated each of those risks? Explain.Should U.S. companies integrate legal protections for internal whistleblowers into their internal control systems? Defend your answer
Post your question