Fraud type and auditor litigation: An analysis of SEC accounting and auditing enforcement releases.
分析SEC执法公告中的财务报告欺诈类型，发现常见欺诈和虚构交易欺诈更可能导致审计师被起诉，对审计师评估诉讼风险有参考价值。
Abstract This study examines whether certain types of financial reporting fraud result in a higher likelihood of litigation against independent auditors. We expect that auditors are more likely to be judged responsible for failing to detect commonly occurring frauds of those that stem from fictitious transactions. We examine companies with SEC Accounting and Auditing Enforcement Releases and designate whether each fraud present in their financial statements in common and/ or arises from fictitious transactions. We then examine whether these types of fraud are related to auditor litigation in analyses that control for various client, auditor and case characteristics. Our results provide some support for our two primary hypotheses - auditors are more likely to be sued when the financial statement frauds are of a common variety or when the frauds arise from fictitious transactions.