Increased auditor liability has resulted from class action lawsuits and the complexity of accounting principles.

Question

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Class action lawsuits typically involve many plaintiffs suing a defendant, and can result in large damages. The complexity of accounting principles also presents a challenge for auditors, who may be held liable for failing to properly detect financial misstatements. As a result, auditor liability has increased in recent years.

Increased Auditor Liability Has Resulted from Class Action Lawsuits and the Complexity