A Review of the Literature in Audit Litigation

The current state of audit litigation research is examined. The literature on any type of audit litigation the CPA may face is examined, but not litigation associated with other services. Literature on litigation against parties other than the auditor, such as officers and directors, is included when it can help to understand audit litigation. Research issues are grouped into 3 areas and each area is examined in terms of what has been learned, what still needs to be learned, and data issues that may exist. The literature that views litigation as the dependent variable is examined. The literature that views litigation more as an independent variable that causes changes in other factors is examined. The literature on the legal system itself, including other means of dispute resolution, is discussed. A table is provided for each of these 3 sections, summarizing, as applicable, samples used, variables examined, methodology employed, and key findings.