Contemporary Auditing 10th Edition by Michael Knapp

Exercise 3

KPMG filed a civil lawsuit against Diligence, Inc., in 2005 after learning of the "sting operation" that firm had perpetuated on Guy Enright. What rationale or legal principles would have been the basis for that lawsuit Do you believe that KPMG would have been successful if it had pursued that lawsuit rather than settling it out of court Assuming that KPMG believed it would ultimately win a civil judgment against Diligence, why would the accounting firm choose to settle the lawsuit out of court Explain.