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The analysis investigates the circumstances leading to lawsuits against public accountants and types of errors made.

An Analysis of the Factors Associated with Lawsuits Against Public Accountants.

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Analysis reveals factors influencing lawsuits against public accountants, suggesting areas for improved practices.

The analysis investigates the circumstances leading to lawsuits against public accountants and types of errors made.
Examined 129 lawsuits filed against public accountants.
Categorized 334 alleged errors claimed by plaintiffs.
Analyzed types of engagements and situational characteristics of cases.
Procedural issues are less significant than accounting principle interpretation errors.
Initiation of error searches is influenced by client signals or industry characteristics.
High legal risk is associated with new client engagements of three years or less.
Certain industries present increased risks of legal problems for accountants.
Public companies are disproportionately involved in the lawsuits analyzed.

Pierre et al. (1984) studied this question.

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