Introduction to Lesson 4 Assignment In this lesson, we have discussed who may want to bring a lawsui

 Introduction to Lesson 4 Assignment

In this lesson, we have discussed who may want to bring a lawsuit against auditors, factors plaintiffs must prove in a lawsuit, and defenses auditors can present to mitigate client’s claims. Now, let’s apply what we learned to a real lawsuit filed against auditors.

Your Tasks:

Pick one legal case against auditors that was filed after 2010 (you can pick a case from page 680 of the textbook but don’t use any case discussed in “Auditing Insight” box in the chapter), and answer following questions. Address the following in a 1-2 page Word document (Properly cite the sources when you use other people's work in your writing).

1. Provide a brief description of the key events and the factual issues behind the case.
2. Explain the type of plaintiffs (client/third parties/shareholders) in the case, and the claims of the plaintiffs against auditors.
3. Based on what we discussed in this lesson, which law is relevant to this lawsuit (law of contracts, tort law, Securities Act of 1933, Securities Exchange Act of 1934)?
4. While most cases are settled in reality, let’s pretend the case is still ongoing and think about defenses auditors can come up with in this situation. Keep in mind that what auditors can use as defenses depends on which law the lawsuit is based on. Discuss potential defenses auditors can use in the specific case you selected.