The American Accounting Association announces that Studies in Accounting Research #33, Empirical Research in Auditor Litigation: Considerations and Data (2000) is now available.
Studies in Accounting Research #33 provides guidance for conducting empirical research on auditor litigation and for using data on auditor litigation in teaching. To facilitate research and teaching, the monograph includes a CD-Rom with a Database.
The Database contains over 1,000 client observations with audit litigation involving the Big Five and their legacy firms. Non-Big Five firms are included on joint litigation. The Database includes litigation over allegations of audit failure on audits from 1960 through 1995, as long as legal actions were filed by the end of 1995. The Database contains an extensive amount of information about the client observations. The Database, for example, includes information on clients and auditors, accounting and auditing issues, legal characteristics and issues, regulatory actions, and litigation resolutions. All information is from public sources available through early 1999.
The Database is designed for use with Microsoft Access. It should be easily usable by academics, practitioners, and students alike. While the Database as published provides a rich source of litigation-related information, it is also designed so that users can customize it to meet their particular needs. For example, the Database can be updated with further information about the observations or with additional observations, such as audit litigation filed after 1995.
The monograph makes a number of suggestions for using the Database in a variety of research settings. The Database is designed for stand-alone use or it can be used in combination with data from other sources. The discussion of research considerations and applications encompasses both the usefulness and the limitations of the Database.
In addition, the Database and the information it contains should be a welcome addition in teaching graduate and undergraduate courses on financial accounting, financial statement analysis, and auditing along with other courses on legal, governance, regulatory, and institutional issues. The discussion of teaching applications includes suggestions on opportunities for bringing litigation-related topics into the classroom through supplementing lecture materials, promoting active learning, developing new teaching cases, extending and enriching existing case materials, and designing student projects, assignments, and other educational activities.
Studies in Accounting Research #33, Empirical Research in Auditor Litigation: Considerations and Data, is authored by Zoe-Vonna Palmrose, PricewaterhouseCoopers Auditing Professor at the University of Southern California. It can be purchased from the American Accounting Association for $20 (members) or $30 (non-members).