European Accounting Review 2000‚ 9:3‚ 371 385 Auditor liability rules under imperfect information and costly litigation: the welfare-increasing eŒ of liability ect insurance Ralf Ewert‚ Eberhard Feess and Martin Nell University of Frankfurt‚ Frankfurt am Main ABSTRACT This paper examines auditor liability rules under imperfect information‚ costly litigation and risk-averse auditors. A negligence rule fails in such a setting‚ because in equilibrium auditors will deviate with positive probability from
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Summary of The Auditor The Auditor by James K. Loebbecke tells a story about the life and career of an auditor named Jack Butler. The book shows Jack’s career from his education all the way to his promotion to partner. Loebbecke designed this story about Jack as a teaching tool to give students an understanding about the life of an auditor. The story begins with Jack’s promotion to partner and how it was bittersweet for him. Jack is excited for the promotion‚ but is also nervous about the
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Auditor Independence: An Impossible Dream In recent months there has been much discussion about the independence of CPA auditors; the leadership of the AICPA‚ the Auditing Standards Board‚ the Public Oversight Board‚ the Independence Standards Board‚ and most recently the proposed independence rules promulgated by the SEC have all attempted to clarify and strengthen auditor independence. Several newspaper and magazine articles have also addressed the issue. In my opinion‚ all the efforts to
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Table of Contents 1.0 Introduction 1.1 Audit 1.2 nature of auditor independence 1.3 principle of auditor independence 2.0 The concept of auditor rotation 3.0 The history and current debates concerning auditor rotation 4.0 Different countries regimen should be considered 5.0 Conclusion 6.0 List of references 7.0 Appendices 1.0 INTRODUCTION 1.1 Audit Auditing is the analysis of the financial accounts or records‚ by a qualified accountant‚ and
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decade owing to partly serious corporate governance deficiencies‚ among other challenges. As a result‚ the research serves to highlight‚ hint and encourage all the relevant stakeholders to establish proper corporate governance structures in which the auditor is tasked to review and evaluate the effectiveness and efficient of the structures. Corporate governance measures and other incentives are unveiled by the top-level management in various companies to create a platform for companies to transform
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Writing doesn’t have to be political to be a good work although George Orwell argues that political purpose is necessary for a successful work. Fundamentally‚ I think Orwell’s opinion about good writing doesn’t leave any room for discussion because of his definition of being political. He defines being political as having “desire to push the world in a certain way.” However‚ this is an overly broad definition since we do this every day if we are “thinking” human beings. There are some occasions where
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The mean for responsibility from dictionary.reference.com is: the state or fact of being responsible‚ an instance of being responsible “The responsibility for this mess is yours!”‚ a particular burden of obligation upon one who is responsible “the responsibilities of authority”‚ a person or thing for which one is responsible “A child is a responsibility to its parents” reliability or dependability‚ esp. in meeting debts or payments. But then you ask yourself what is responsibility to you. To me it
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In the meta-analysis performed by Gao L et al‚ ten randomized clinical studies were reviewed to determine the effect of ondansetron in the prevention of hypotension after spinal anesthesia was initiated. The researchers used relative risk with a 95% confidence interval to analyze their outcomes. The meta-analysis suggests that spinal-induced hypotension‚ bradycardia‚ and amount of vasopressors needed were reduced with prophylactic ondansetron. However‚ Gao L et al recommends that further‚ stricter
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vice president of finance‚ was hired personally by Fred Pomerantz. However‚ Fred Pomerantz ended up taking the company back to a private entity for a few years in the 1980’s due to a buy out from his son John Pomerantz. The Leslie Fay Companies became public again in 1986. The market for women’s apparel was going downhill due to the recession from the 1980’s through the 1990’s. Several large chain were forced to merge with other competitor or to liquidate as well as its major competitor‚ Liz Claiborne
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Currently‚ an auditor may only resign if he is not the sole auditor of the company and his resignation must be made at a general meeting of the company. If an auditor gives notice in writing to the directors of the company that he wishes to resign‚ the directors shall call a general meeting of the company as soon as it is practicable. This is for the purposes of appointing an auditor in place of the auditor who wishes to resign and to appoint another auditor. The resignation of the auditor shall take
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