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From "Audit Group Faults Treasury Advisory Panel On Litigation Risk"
Dow Jones Newswires (Subscription required for full article)
June 27, 2008
"A U.S. Treasury Department advisory committee must tackle catastrophic risks that could bring down a public-company audit firm, according to the Center for Audit Quality, Dow Jones Newswires' Judith Burns reported. "Lawsuits seeking massive damages from auditors of a public company could be crippling, the Washington-based [CAQ] said in a letter Friday to the Treasury advisory committee." The story noted, "An inability to settle just one mega-claim could lead to the demise of an entire firm," [CAQ] Executive Director Cynthia Fornelli wrote. ... She urged the Treasury advisory panel to support changes such as those backed by the European Union, which has recommended liability caps or proportionate liability in civil suits against auditors and audit firms."
