Which of the following is not one of the reasons for increased litigation related to audits?
A) Class action lawsuit.
B) Increased complexity of accounting standards.
C) Contingent-fee-based compensation for law firms.
D) Joint and several liability doctrines.

Question

Quizplus · Accepted Answer

The increased complexity of accounting standards is actually one of the reasons for increased litigation related to audits, so it is not the answer. The other options are all valid reasons for increased litigation: class action lawsuits allow large groups of plaintiffs to combine their claims into a single suit, contingent-fee-based compensation incentivizes law firms to pursue litigation even with uncertain outcomes, and joint and several liability doctrines make it easier for plaintiffs to recover damages from defendant parties.

Which of the Following Is Not One of the Reasons