... understanding of the costs and externalities of auditor litigation in capital markets. Data Availability: All data are publicly available from the sources identified in the paper. JEL Classifications: M41; M42. We appreciate the invaluable comments provided by Jaime J. Schmidt (editor), two...

... quality auditor litigation audit fees Overall, the combined results suggest that greater experience auditing distressed clients helps auditors issue more accurate GCOs, and also helps attenuate negative consequences for auditors from auditing financially distressed clients. In addition...

... above, the auditor’s litigation risk is a product of the client’s litigation risk and the auditor’s risk of being implicated. Using probability theory, the likelihood that an auditor is sued, P(AL), is a function of whether the client is sued, P(CL), and whether the auditor is added to the client...

... to such variation when the experts conclude that the auditors were not negligent. Implications for theory, practice, and regulation are discussed. Data Availability: Available from the authors upon request. November 2013 February 2015 2015 auditor litigation auditor negligence expert...

... and positive relation between the number of apology components and perceptions of the accounting firm's reputation. Adding components to the apology results in exponentially better perceptions of the accounting firm's reputation. This paper contributes to the existing auditor litigation literature...

... from the comments of Kendall Bowlin, Jeremy Griffin, Jon Grenier, Jennifer Mueller, Alan Reinstein, and Rick Warne. auditor litigation expert jurors lay jurors liability assessments Juries usually do their job very well, but juries have the ability to disappoint us, sometimes...