Accounting/Auditing Litigation

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Anonymous User
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Accounting/Auditing Litigation

Postby Anonymous User » Mon Dec 06, 2010 11:45 am

I am a CPA with several years of Big 4 audit experience, set to pursue a career in law. As one of the possibilities, I want to explore the the field of audit litigation (auditor malpractice) and wanted to see if anyone here has some exposure to this area.

Is there a large legal market for audit litigation?
How hard is this market to enter and what would increase my chances in doing so?

Any other related information will be appreciated.

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crazycanuck
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Re: Accounting/Auditing Litigation

Postby crazycanuck » Mon Dec 06, 2010 4:45 pm

I would imagine it's pretty small and hard to break into.

Only major scandel that I can think of that required litigation was Arther Anderson. Usually if there is a case of malpractice there is just a restatement and the auditor gets fired.

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Re: Accounting/Auditing Litigation

Postby Anonymous User » Mon Dec 06, 2010 9:02 pm

I am the OP.

The high profile audit malpractice cases that make the news are not the only ones that are out there. While working for the big 4, I heard about legal disputes with our former clients constantly. Besides, it is probably safe to assume that the majority of audit disputes do not involve the big 4 (who have a very robust audit procedure and go out of their way to protect themselves from litigation), but the smaller firms or outright incompetent amateurs who think that getting a CPA license qualifies them to sign off on any audit opinion.

Anonymous User
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Re: Accounting/Auditing Litigation

Postby Anonymous User » Tue Dec 07, 2010 2:31 am

Anonymous User wrote:I am the OP.

The high profile audit malpractice cases that make the news are not the only ones that are out there. While working for the big 4, I heard about legal disputes with our former clients constantly. Besides, it is probably safe to assume that the majority of audit disputes do not involve the big 4 (who have a very robust audit procedure and go out of their way to protect themselves from litigation), but the smaller firms or outright incompetent amateurs who think that getting a CPA license qualifies them to sign off on any audit opinion.


I dunno, I work at a big 4 and i imagine it would fall to the usual contract dispute types.

*shrug*

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McBean
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Re: Accounting/Auditing Litigation

Postby McBean » Wed Dec 08, 2010 6:43 pm

Anonymous User wrote:
Anonymous User wrote:I am the OP.

The high profile audit malpractice cases that make the news are not the only ones that are out there. While working for the big 4, I heard about legal disputes with our former clients constantly. Besides, it is probably safe to assume that the majority of audit disputes do not involve the big 4 (who have a very robust audit procedure and go out of their way to protect themselves from litigation), but the smaller firms or outright incompetent amateurs who think that getting a CPA license qualifies them to sign off on any audit opinion.


I dunno, I work at a big 4 and i imagine it would fall to the usual contract dispute types.

*shrug*


Usually it involves shareholder suits or anyone else who feels like they were screwed by the company and think the auditor should have picked up on it; i.e. malpractice. I would imagine that the market for auditor defense coincides with the market in general. I would also imagine that within each market you find firms who have most of the share of that niche.

Outside of NY, I have no idea, but I know that in NY, Orrick has quite an auditor defense practice and reps all of the Big 4.




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