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Auditor Liability Beginning of Paper Throughout the Eighties and into the Nineties the question of liability has become more prevalent in the practice of public accounting. Recently, the AICPA has been lobbying for liability reform in cases involving negligence or malpractice by public accountants. Opposition to this .... Middle of Paper .... of liability reform rely heavily on an idealistic constitutional argument as well as an economic argument to foster their point. The main components of their argument are as follows: Limiting recovery of loss has a detrimental effect on those which are harmed by alleged negligence. The cost of liability is reasonable when compared to total revenues, and in light of a CPA's public responsibility. Indemnity insurance spreads risk in the aggregate therefore removing the element of risk at the firm level. The threat of litigation provides p .... 2099 words | 8 pages Subscription Length Price Join 30 days membership (recurring) $19.95 90 days membership (recurring) $39.95 180 days membership (non-recurring) $69.95