The impact of auditor's legal liability on managenent fraud and audit effort
碩士 === 國立政治大學 === 會計研究所 === 92 === In America, the audit profession contends legal practices treat auditors unfairly. Until recently, they have been held jointly and severally liable for undetected material misstatements and have had to pay their own legal fees whether or not they prevail in court....
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ndltd-TW-092NCCU53850152015-10-13T16:22:48Z http://ndltd.ncl.edu.tw/handle/65556637592621075598 The impact of auditor's legal liability on managenent fraud and audit effort 會計師法律責任對經理人舞弊與會計師查核努力水準之研究 簡駿貿 碩士 國立政治大學 會計研究所 92 In America, the audit profession contends legal practices treat auditors unfairly. Until recently, they have been held jointly and severally liable for undetected material misstatements and have had to pay their own legal fees whether or not they prevail in court. Hence, they have asked for proportionate liability regime in decades and have got some success. A primary concern about proportionate liability is its potential effects on stockholders. Opponents claim that proportionate liability would decrease investor protection when managers are bankrupt due to the reduction in compensatory payments from auditors. Until now, this controversy still exists. To understand how auditor’s legal liability affects audit failure, this study focuses on the impacts of auditor’s legal liability on management fraud and audit effort. Based on Patterson and Wright (2003) analytical model, this study investigates the effectiveness of proportionate liability in reducing the amount of management fraud and the audit failure rate relative to joint and several liability in two strategic audit settings: one that audit quality is affected by audit effort and one that audit quality is affected by both audit effort and the amount of management fraud. My results show that a proportionate liability rule with large marginal liability relief for audit quality can effectively decrease the amount of management fraud and the audit failure rate relative to joint and several liability in both strategic audit settings. This result would provide valuable reference in auditor’s legal liability determination for policy-makers and regulators. 戚務君 2004 學位論文 ; thesis 109 zh-TW |
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碩士 === 國立政治大學 === 會計研究所 === 92 === In America, the audit profession contends legal practices treat auditors unfairly. Until recently, they have been held jointly and severally liable for undetected material misstatements and have had to pay their own legal fees whether or not they prevail in court. Hence, they have asked for proportionate liability regime in decades and have got some success. A primary concern about proportionate liability is its potential effects on stockholders. Opponents claim that proportionate liability would decrease investor protection when managers are bankrupt due to the reduction in compensatory payments from auditors. Until now, this controversy still exists. To understand how auditor’s legal liability affects audit failure, this study focuses on the impacts of auditor’s legal liability on management fraud and audit effort.
Based on Patterson and Wright (2003) analytical model, this study investigates the effectiveness of proportionate liability in reducing the amount of management fraud and the audit failure rate relative to joint and several liability in two strategic audit settings: one that audit quality is affected by audit effort and one that audit quality is affected by both audit effort and the amount of management fraud.
My results show that a proportionate liability rule with large marginal liability relief for audit quality can effectively decrease the amount of management fraud and the audit failure rate relative to joint and several liability in both strategic audit settings. This result would provide valuable reference in auditor’s legal liability determination for policy-makers and regulators.
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戚務君 |
author_facet |
戚務君 簡駿貿 |
author |
簡駿貿 |
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簡駿貿 The impact of auditor's legal liability on managenent fraud and audit effort |
author_sort |
簡駿貿 |
title |
The impact of auditor's legal liability on managenent fraud and audit effort |
title_short |
The impact of auditor's legal liability on managenent fraud and audit effort |
title_full |
The impact of auditor's legal liability on managenent fraud and audit effort |
title_fullStr |
The impact of auditor's legal liability on managenent fraud and audit effort |
title_full_unstemmed |
The impact of auditor's legal liability on managenent fraud and audit effort |
title_sort |
impact of auditor's legal liability on managenent fraud and audit effort |
publishDate |
2004 |
url |
http://ndltd.ncl.edu.tw/handle/65556637592621075598 |
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