A coalition of business and professional organizations supporting litigation reform, including the American Institute of CPAs, is working with members of Congress to develop a litigation reform package capable of winning passage in the House and Senate.
The Coalition to Eliminate Abusive Securities Suits (CEASS) said the nation's six largest CPA firms spent $477 million to settle or fight lawsuits in 1991. According to the coalition, that figure represents 9% of the firms' more than $5 billion in combined auditing and accounting revenues last year.
Moreover, many midsized and small accounting firms responding to a recent AICPA member survey said they have found it necessary to eliminate auditing services or restrict them to select, "low-risk" clients in industries in which there is little risk of increased liability.
Proportionate liability. One of CEASS's goals is to replace joint...