THE PROFESSIONS Describe what the profession and the RESPONSE TO individual Cpa can do and what is being done to reduce the threat of litigation LEGAL LIABILITY Research in auditing Standard and rule setting Set requirements to protect auditors Establish peer review requirements Oppose lawsuits Education of users Sanction members for improper conduct and performance Lobby for changes in laws Loebbecke Au面BEArens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc, Describe what the profession and the individual CPA can do and what is being done to reduce the threat of litigation. THE PROFESSION’S RESPONSE TO LEGAL LIABILITY • Research in auditing • Standard and rule setting • Set requirements to protect auditors • Establish peer review requirements • Oppose lawsuits • Education of users • Sanction members for improper conduct and performance • Lobby for changes in laws