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Two Essays On The Tax Consequences Of Auditor Litigation Risk : Evidence From Quasi-Natural Experiments, Felix Owusu
Two Essays On The Tax Consequences Of Auditor Litigation Risk : Evidence From Quasi-Natural Experiments, Felix Owusu
Lingnan Theses and Dissertations (MPhil & PhD)
In the United States, auditors have legal liability to third parties under federal securities law and state common laws, which vary in the degree of liability. Whereas auditors are liable to security traders for fraud under the federal securities law, they are liable for ordinary negligence under common law. Using a sample of company-year observations from 1982 to 2015, I examine the implications of the adoption of common law statutes on audit client tax outcomes. My thesis consists of two essays. The first one examines how the staggered adoption of these common law principles that increased third-party auditor legal liability …