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Discuss mandatory insurance for corporate directors and its effect on auditor liability.

1. Describe joint and several liability and the arguments for and against it.

2. Discuss what factors a court should consider in determining the level of damages to be paid by an auditor to a plaintiff.

3. Discuss why an increasing number of accounting firms have willingly settled lawsuits out of court.

4. What are the arguments raised by the accounting profession with regard to proportionate liability among co-defendants?

5. Discuss mandatory insurance for corporate directors and its effect on auditor liability

Solution:

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