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| Author: | Kadous, K. |
| Title: | The effects of audit quality and consequence severity on juror evaluations of auditor responsibility for plaintiff losses |
| Journal: | Accounting Review
2000 : JUL, VOL. 75:3, p. 327-341 |
| Index terms: | Service Quality Auditors Accountants Liability Litigation USA |
| Language: | eng |
| Abstract: | This study investigates whether providing higher quality audits increases auditors' chances of avoiding legal liability. Negligence rules hold auditors responsible for plaintiff losses only when the quality of the audit provided fails to meet standards of care. The results suggest that the ex-post observed consequences of audit failure can affect the standards of care to which jurors hold auditors. Specifically, participants serving in the role of jurors assessed higher standards of care for auditors when the consequences of audit failure were more severe. |
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