Treasury Panel Splits on Lawsuit Risks for Auditors
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The U.S. Treasury panel reviewing the audit industry was split over whether firms need protection from lawsuits, opting to keep the debate in their final report rather than a call for liability limits.
The report calls for changes to prevent fraud, recruit more talent and protect the health of the auditing industry. The panel, led by former Securities and Exchange Commission Chairman Arthur Levitt and former SEC Chief Accountant Donald Nicolaisen, approved its final report on a 14-1 vote. Lynn Turner, another former SEC chief accountant, was the lone dissenter.