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THREE STUDIES INVESTIGATING THE LEGAL LIABILITY IMPLICATIONS OF THE SARBANES-OXLEY ACT OF 2002

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Date Issued:
2010
Abstract/Description:
This dissertation examines the litigation and legal liability exposure of auditors related to the Sarbanes-Oxley Act of 2002 (SOX). Three separate studies were conducted to examine how auditorÂÂ's litigation exposure is evaluated by potential litigants (lawyers), and how auditor liability is evaluated by jurors, following the bankruptcy of a client. The first study examines whether the auditorÂÂ's SOX Section 404 reporting decisions influence lawyersÂÂ' assessments of their litigation exposure. The second study investigates whether voluntary disclosures of significant deficiencies in internal controls within the SOX Section 404 report, and the subjectivity of the internal control judgments made by the auditor, influence jurorsÂÂ' perceptions of auditor liability for negligence. The third study examines how the requirements of SOX Section 302 related to audit committee independence and audit committee expertise influence jurorsÂÂ' perceptions of auditor independence and auditor liability for negligence. Overall, these three studies provide insights on how different provisions of SOX, specifically the Section 404 report and audit committee requirements, influence the likelihood that auditors will be sued and the likelihood that they will be held liable by a jury.
Title: THREE STUDIES INVESTIGATING THE LEGAL LIABILITY IMPLICATIONS OF THE SARBANES-OXLEY ACT OF 2002.
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Name(s): Phillips, Jillian, Author
Arnold, Vicky, Committee Chair
University of Central Florida, Degree Grantor
Type of Resource: text
Date Issued: 2010
Publisher: University of Central Florida
Language(s): English
Abstract/Description: This dissertation examines the litigation and legal liability exposure of auditors related to the Sarbanes-Oxley Act of 2002 (SOX). Three separate studies were conducted to examine how auditorÂÂ's litigation exposure is evaluated by potential litigants (lawyers), and how auditor liability is evaluated by jurors, following the bankruptcy of a client. The first study examines whether the auditorÂÂ's SOX Section 404 reporting decisions influence lawyersÂÂ' assessments of their litigation exposure. The second study investigates whether voluntary disclosures of significant deficiencies in internal controls within the SOX Section 404 report, and the subjectivity of the internal control judgments made by the auditor, influence jurorsÂÂ' perceptions of auditor liability for negligence. The third study examines how the requirements of SOX Section 302 related to audit committee independence and audit committee expertise influence jurorsÂÂ' perceptions of auditor independence and auditor liability for negligence. Overall, these three studies provide insights on how different provisions of SOX, specifically the Section 404 report and audit committee requirements, influence the likelihood that auditors will be sued and the likelihood that they will be held liable by a jury.
Identifier: CFE0003340 (IID), ucf:48480 (fedora)
Note(s): 2010-08-01
Ph.D.
Business Administration, Kenneth G. Dixon School of Accounting
Masters
This record was generated from author submitted information.
Subject(s): Accounting
Auditor Liability
Auditing
Litigation
Sarbanes-Oxley Act of 2002
Internal Controls
Audit Committee
Persistent Link to This Record: http://purl.flvc.org/ucf/fd/CFE0003340
Restrictions on Access: campus 2011-07-01
Host Institution: UCF

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