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Accounting

ISSN 2369-7407 (Online) - ISSN 2369-7393 (Print)
Quarterly Publication
Volume 7 Issue 6 pp. 1435-1444 , 2021

Auditors’ perceptions of their roles and responsibilities: The impact of exposure to litigation risk Pages 1435-1444 Right click to download the paper Download PDF

Authors: Ahmed Abdullah Saad Al-Dhubaibi

DOI: 10.5267/j.ac.2021.3.021

Keywords: Auditors, Audit objectives, Responsibility, Liability, Fraud, Assurance, Litigation risk, Partners, Audit managers, Senior auditors

Abstract: The purpose of this study is to investigate the perception of auditors regarding their responsibilities and potential liabilities to third parties in the case of failure to detect fraud/material misstatements and report the findings to the appropriate party. The study proposes that auditors’ perception of their own responsibilities will depend on the level of litigation threat expected by the auditor based on his or her position in the audit firm. The questionnaire was sent to the big 4 audit firms, the global audit firms other than the big 4, and to 189 different sized local audit firms registered with the Saudi Organization of Certified Public Accountants (SOCPA). The findings of this study revealed significant variations among auditors with regards to their perceptions of their own responsibilities and liabilities to financial statements’ users affected by their expected level of exposure to litigation risk.

How to cite this paper
Al-Dhubaibi, A. (2021). Auditors’ perceptions of their roles and responsibilities: The impact of exposure to litigation risk.Accounting, 7(6), 1435-1444.

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Journal: Accounting | Year: 2021 | Volume: 7 | Issue: 6 | Views: 1610 | Reviews: 0

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