As discussed in the opening reflection, MF Global filed a complaint charging PwC with professional malpractice, breach
Question:
As discussed in the opening reflection, MF Global filed a complaint charging PwC with professional malpractice, breach of contract, and unjust enrichment in connection with its advice concerning, and approval of, the company’s off-balance-sheet accounting for its investments. On March 23, 2017, PwC finally settled a potential $3 billion lawsuit by the administrator of the bankrupt MF Global. The administrator argued accounting errors, including allowing MF Global to keep the bonds off its balance sheet. The premature settlement left open the question of whether auditors should be held legally liable for their advice on complex accounting questions that require complex judgments? What do you believe?
Step by Step Answer:
Ethical Obligations and Decision Making in Accounting Text and Cases
ISBN: 978-1259969461
5th edition
Authors: Steven M. Mintz, Roselyn E. Morris