During the Global Financial Crisis (GFC) of the late 2000s several banks failed and other companies were adversely affected. It is possible that shareholders and lenders of failed companies could take legal action against auditors as they search for scapegoats and potential places to recover their losses. The tough economic times following the GFC could also cause companies to fail that would otherwise have survived, exposing bad management and poor quality auditing.

Required

Conduct a literature search for reports of threatened and actual legal action against auditors since the beginning of the GFC. Include in your search articles raising questions about auditors and the quality of their work even though legal action has not commenced. Write a summary of your findings and comment on the merits of the cases against auditors. Is there any evidence of poor quality auditing?