Abstract
The Sarbanes-Oxley Act of 2002 enhances criminal penalties for accounting and auditing improprieties as part of an overall effort to prevent a repetition of the considerable harm caused by inaccurate and fraudulently prepared corporate financial statements. This paper focuses on the liability of accountants in situations where third parties are harmed by reliance on financial statements that are negligently, albeit not fraudulently, prepared. A review of legal theory is followed by a description of other trends influencing the accountability of the accounting profession.
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Greene, F.D., Petrocine, A.R. & FitzPatrick, R.C. Holding Accountants Accountable: The Liability of Accountants to Third Parties. Employee Responsibilities and Rights Journal 15, 23–29 (2003). https://doi.org/10.1023/A:1022489415055
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DOI: https://doi.org/10.1023/A:1022489415055