Insider Trading and Other Auditor Independence Rules: What Litigators Should Know About Accountants’ Malpractice
Natasha Perssico, MBA
Barry Jay Epstein, Ph.D., CPA, CFF
One of the hallmarks of the public accounting profession is the requirement that auditors be independent from their clients, both in fact and in appearance – an obligation that is not imposed on other professional service providers. Recently, violations of auditor independence rules have become more prominent as bases for auditors’ liability litigation. Understanding these rules may thus be important to attorneys asserting accountants’ malpractice, as well as for those defending actions taken and work performed by the auditors.
