The global financial crisis led to increasing legal action against auditors as company managers searched for scapegoats and potential places to recover their losses. The tough economic times also likely caused companies that would otherwise have survived to fail, exposing bad management and poor-quality auditing.
Required
Conduct a literature search for reports of threatened and actual legal action against auditors as a result of the global financial crisis. Include in your search articles raising questions about auditors and the quality of their work even though legal action may not have commenced.
Write a summary of your findings and comment on the merits of the cases against auditors. Is there any evidence of poor-quality auditing?