Description: On February 13, 2017, this blog featured a piece called “Every 20 Years or So.” It dealt with auditing firm Deloitte’s appeal of court decision that it pay roughly $85 million in damages related to their involvement in audit of the failed Livent enterprise. Well, if you read that blog post, you may know what I mean when I say I have been talking with my lawyer friend again. He tells me that we can probably expect a number of months will pass before the court provides its decision. It all seems to take a long time for justice to have the final word on accounting and auditing decisions made in 1996 and 1997. In the meantime, you can always watch a video of the hearing at the CPAC website (see the link below).
Date: February 15, 2017
1) Were you familiar with the issues in the Deloitte case? (If not, you can read a brief overview on page 54 of Wiley’s Auditing: A Practical Approach.)
2) How do you think a highly public court case like this impacts upon the professional image of an accounting firm?
3) Based on your reading of the matter, how do you think the Supreme Court might rule?