Which of the following is not an incentive for filing lawsuits against audit firms?
A)Class action lawsuits.
B)Increased complexity of accounting standards.
C)Contingent-fee-based compensation for law firms.
D)Joint and several liability doctrine.

Question

Quizplus · Accepted Answer

Increased complexity of accounting standards may be a motivator for litigation against audit firms, as errors and misstatements may be more likely to occur. However, it is not viewed as a direct incentive for filing lawsuits against audit firms. The other choices - class action lawsuits, contingent-fee-based compensation for law firms, and joint and several liability doctrine - are all incentives for litigation against audit firms.

Which of the Following Is Not an Incentive for Filing