Dr. Arthur Gumenik
Degree Award Date
CPAs, Attorneys, Contingent Liabilities, advocates
Accounting | Business | Business Law, Public Responsibility, and Ethics
Auditors are required by the American Institute of Certified Public Accountants to obtain a letter from their clients' legal counsel for the sole purpose of evaluating asserted and unasserted claims against the client. The role of the independent auditor is to attest to the fairness of management's financial statements. Thus, the auditor may never sacrifice independence, and may not serve as an advocate for the client. Attorneys, on the other hand, do serve as advocates. Professional guidelines and standards for auditors and attorneys regarding contingent liabilities differ. Therefore, I wish to investigate whether the inquiries of a client's attorney provide the CPA with sufficient evidence regarding litigation that should be disclosed within the financial statements.
Guills, Amy Michelle, ""Contingent Liabilities: What CPAs Want To Know And What Attorneys Are Willing To Tell"" (1997). Honors Projects. 509.