Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 277

Class Action Lawsuits. In the United States, it has become common to seek recovery of financial losses from other parties, often even if that other party is not at fault. Frequently, this occurs by means of a class action lawsuit.
Required:
a. What is a class action lawsuit?
b. What advantages does a class action lawsuit have for the plaintiffs?
c. What disadvantages does a class action lawsuit have for the defendant?
d. How has recent legislation affected class action lawsuits?
e. Perform an Internet search for information regarding class action lawsuits against auditors. What are the (1) particulars of the lawsuit and (2) auditors' defenses?