Response to the following questions:
1. State several factors that have affected the incidence of lawsuits against CPAs in recent years.
2. Lawsuits against CPA firms continue to increase. State your opinion of the positive and negative effects of the increased litigation on CPAs and on society as a whole.
3. Distinguish between business failure and audit risk. Why is business failure a concern to auditors?
4. How does the prudent person concept affect the liability of the auditor?