Legal Liability is Having a Chilling Effect on the Auditor's Role.

Shaun F. O'Molley

doi:10.2308/ah-9131964

June 1, 1993Accounting Horizons

Legal Liability is Having a Chilling Effect on the Auditor's Role.

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Key Points

This study aims to understand how legal liability influences the effectiveness and reporting duties of auditors.
Evaluation of management and auditor assessments of internal controls
Analysis of direct reporting processes from auditors to regulators
Examination of the relationship between auditors and interim financial information
Legal liability significantly constrains auditor independence and effectiveness.
Auditors face pressure to limit their reporting due to fear of legal repercussions.
Increased liability may lead to more cautious evaluations of internal controls and financial information.

Implication

This discussion highlights how legal liability affects auditors' roles in evaluating internal controls and reporting.

Abstract

Discusses the effect of legal liability on the auditor's role. Management and auditor evaluations of internal control systems; Direct reporting by auditors to regulators; Association of auditor with interim financial information.

Discussion

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Cite This Study

Shaun F. O'Molley (1993) studied this question.

synapsesocial.com/papers/6a2f97e8a1cfeec490828f5e https://doi.org/10.2308/ah-9131964

View at Publisher

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Legal Liability is Having a Chilling Effect on the Auditor's Role.

Key Points

Implication

Abstract

Discussion

Cite This Study

Legal Liability is Having a Chilling Effect on the Auditor's Role.

Key Points

Implication

Abstract

Discussion

Cite This Study

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