Do you think auditors should able to escape legal liability

Assignment Help Management Theories

Reference no: EM131380118

The legal concept of in pari delicto holds that in a "case of equal or mutual fault [in a financial fraud] the position of the defending party [auditor] is the stronger one." The predicate for this defense is imputation: holding the corporation responsible for the acts of its officers.

The leading case authority is Cenco Inc. v Seidman & Seidman, a 1982 case where the court permitted an auditor to invoke the in pari delicto doctrine to defeat a claim against it for failing to detect fraud by the management of an audit client.

From an ethical perspective, do you think auditors should be able to escape legal liability for failing to uncover fraud under the doctrine.

Reference no: EM131380118

Questions Cloud

Discuss about the menu selection and organization : Describe the considerations that you would take into account when selecting the menu style for an application and why. Support your response with examples.Imagine you have been asked to help a novice designer effectively organize his menu content i..

What practice typically trigger clawback actions by the sec : Apparently, such provisions now have become a widely accepted corporate governance practice. What practice(s) typically trigger clawback actions by the SEC?

Select one of the working groups in the ietf or ieee : Select one (1) of the working groups in the IETF or IEEE and briefly summarize what this group is working on.Justify the need of the IEEE 802 standard used in networking.Evaluate the three (3) standard organizations including IEEE, ISO, and ANSI to ..

Utilizes sources for support of the summary : Utilizes sources for support of the summary - Establishes context for the production of the film

Do you think auditors should able to escape legal liability : From an ethical perspective, do you think auditors should be able to escape legal liability for failing to uncover fraud under the doctrine.

What would be nixons best defense to such an action : Harry has commenced legal action against Nixon for damages based upon Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. What would be Nixon's best defense to such an action? Explain.

Under given circumstances what liability might the cpa have : It was subsequently learned that the CPA, despite the exercise of reasonable care, had failed to discover a sophisticated embezzlement scheme by Valley View's chief accountant. Under these circumstances, what liability might the CPA have?

Can you suggest a reason for peak in women''s length of stay : What would you suggest be changed about these histograms to make them easier to compare?

What are the legal requirements for a third party : What are the legal requirements for a third party to sue an auditor under Section 10 and Rule 10b-5 of the Securities Exchange Act of 1934? How do these requirements relate to the Hochfelder decision?

User Account

All Pages