Improving the due professional care standard

Emerald - 1996
W.W.Ecton1, MelvinHouston2, AlanReinstein3
1Arthur Andersen & Co. Professor of Accountancy, School of Accountancy, College of Business, University of Kentucky, Lexington, Kentucky, USA
2Lecturer, Department of Accounting, College of Business Administration, Wayne State University, Michigan, USA
3Professor and Chair, Department of Accounting, College of Business Administration, Wayne State University, Michigan, USA

Tóm tắt

Certified public accountants (CPAs), internal auditors, management accountants and other accounting and non‐accounting professionals rely heavily on the concept of due professional care to help assure the public that they prudently exercise their responsibilities. In turn, accountants failing to use adequate due professional care face legal actions when “problems” arise. Based on an analysis of several legal databases, ascertains how the courts view professionals’ use of due professional care and how accountants can minimize such legal liabilities. Then analyses how the CPA profession can better comply with this important auditing standard.

Từ khóa


Tài liệu tham khảo

1Haggard, D., Cooley on Torts, 472, 4th ed., 1932.

2Mautz, R.K. and Sharaf, H., The Philosophy of Auditing, American Accounting Association, Sarasota, FL, 1961.

3Palmrose, Z.V., “An analysis of auditor litigation and audit service quality”, The Accounting Review, January 1988, pp. 55‐73.

4Epstein, M.J. and Spalding, A.D. Jr, The Accountant’s Guide to Legal Liability and Ethics, Irwin, Homewood, IL, 1993.

6Lander, G.H., Cronin, M.T. and Reinstein, A.“In defense of the management accountant”, Management Accounting, May 1990, pp. 54‐7.

7Spalding, A. and Reinstein, A., “Legal liability of the employee‐bookkeeper or employee‐accountant”, The Journal of Professional Bookkeeping and Management, Summer 1992, pp. 35‐45.

8St Pierre, K. and Anderson, J., “An analysis of audit failures based on documented legal cases, ” Journal of Accounting, Auditing and Finance, Vol. 5 No. 3, 1982, pp. 229‐47.

9St Pierre, K. and Anderson, J., “An analysis of factors associated with lawsuits against public accountants, ” The Accounting Review, Vol. 59 No. 2, 1984, pp. 242‐63.

10Guy, D., Israeloff, R. and Hepp, G., “The plain paper controversy, ” Journal of Accountancy, April 1990, pp. 57‐64.

Thông tin
Thông tin xuất bản

Emerald

Thông tin tác giả