Auditor Liability and the Precision of Auditing Standards

摘要: This paper deals with the precision of auditing standards under a negligence liability system for auditors. Auditing such as, e.g., GAAS in US and GoA Germany provide rules judging auditors' due care are supposed to serve both descriptive normative purposes. In order fulfill these functions, it is usually hypothesized that must be made as precise possible. argues, however, vague need not detrimental. fact, shown each standard there exists outperforms equilibrium terms efforts, quality financial statements, costs using legal system, direct well total costs.