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Article
Commonwealth convergence toward a narrower scope of auditor liability to third parties for negligent misstatements
Faculty Publications
  • Carl J. Pacini
  • William A. Hillison
  • Ratnam Alagiah
  • Sally Gunz
SelectedWorks Author Profiles:
Carl J. Pacini
Document Type
Article
Publication Date
2002
Date Issued
January 2002
Date Available
April 2014
Disciplines
Abstract
There have been fundamental shifts in the legal liabilities of auditors in the twentieth century. The article analyses myriad cases. It reveals that case rulings in the later decades moderated previous decisions that had resulted in an expansion of the scope of auditor liability. It shows that there has been a convergence in approach within Commonwealth nations in respect of auditor liability for negligent misstatements. Numerous factors are identified that explain, first the expansion of auditor liability in the early to middle decades of the twentieth century, and also its subsequent reversal in letter decades. The article concludes by arguing that the current positions not likely to remain. The decisions of the courts are shown to be the products of continual struggle to balance the respective rights and interest of auditors, investors (both current and prospective) and the wider community.
Comments
Citation only. Full-text article is available only through licensed access provided by the publisher. Published in Abacus, 38(3), 425-464. Members of the USF System may access the full-text of the article through the authenticated link provided.
Language
en_US
Publisher
Wiley-Blackwell Publishing Asia
Creative Commons License
Creative Commons Attribution-Noncommercial-No Derivative Works 4.0
Citation Information
Pacini, C., Hillison, W., Alagiah, R. & Gunz, S. (2002). Commonwealth convergence toward a narrower scope of auditor liability to third parties for negligent misstatements, Abacus, 38(3), 425-464.