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Audit Litigation Risk Down, but Not Out

Tammy Whitehouse | April 28, 2015

Audit firms have enjoyed a respite from litigation the past few years, but legal experts believe it may only be a period of calm between storms.

A recent report from Cornerstone Research says class-action lawsuits alleging accounting improprieties rose in 2014 after two of the lightest years in the past decade. While only a tiny fraction of those class-action filings are directed at audit firms, an increase in accounting-related claims today suggests that audit firms may appear back on the radar as targets of allegations after some reprieve, experts say.

Patricia Gorham“Anecdotally, yes, litigation is off or lessened against the accounting firms,” says Patricia Gorham, a partner at law firm Sutherland Asbill & Brennan. “I think that is pretty much across the board the past couple of years.” Experts point to a variety...

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