not capture a complete picture of auditor liability, since the vast majority of audit litigation is resolved by attorneys … in out-of-court settlement without ever going to trial. Consistent with attribution theory, results from our first … auditor liability, and that attorneys would benefit from a better understanding of juror decision making …

is subject to probability weighting and loss aversion, which are two important characteristics of Prospect Theory … more intense with a strict liability regime than with a negligence rule because with the latter, the auditor is not held …

third-party auditor legal liability in US states as an exogenous shock, we find that increased risk of auditor litigation …

-level shocks to third-party auditor legal liability in the United States. We find that an exogenous increase in auditor litigation … tests, highlight the important role of liability against auditor negligence in corporate financing decisions …