EBK AUDITING AND ASSURANCE SERVICES
16th Edition
ISBN: 9780134067117
Author: Hogan
Publisher: VST
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Chapter 5, Problem 1RQ
To determine
Give opinions regarding the positive and negative effects of the increased litigation on CPA’s and on society.
Expert Solution & Answer
Explanation of Solution
- The most imperative positive effects are the increased quality control by CPA firms that is probably to consequence from actual and potential lawsuits and the capability of injured parties to receive compensation for their damages.
- Negative effects are the energy needed to defend meritless cases and the destructive effect on the public’s picture of the profession. Legal liability might also increase the cost of audits to society, by resulting CPA firms to raise the evidence accumulated.
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Chapter 5 Solutions
EBK AUDITING AND ASSURANCE SERVICES
Ch. 5 - Prob. 1RQCh. 5 - Prob. 2RQCh. 5 - Prob. 3RQCh. 5 - Prob. 4RQCh. 5 - Prob. 5RQCh. 5 - Prob. 6RQCh. 5 - Prob. 7RQCh. 5 - Prob. 8RQCh. 5 - Prob. 9RQCh. 5 - Prob. 10RQ
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