Abstract Arkansas Solar Heating Corporation (ASHCO) is a multifaceted accounting case study that incorporates financial accounting practice and theory, auditing, and legal concepts. The objectives of this case are threefold. The first objective is to expose students to the difficulties associated with determining and applying GAAP in a real-world situation. The second objective is to raise the issue of professional responsibility and its relationship to GAAS. In addition, students must examine whether the auditor's responsibility to examine the client's records has ended when it is determined that a qualified opinion is necessary. The third objective is to increase student awareness regarding issues involved in the current "litigation crisis" and the related legal liability of auditors.
Arnold et al. (1994) studied this question.