Auditor Independence: Audit Firm

Cornerstone Research was retained by defense counsel for a national accounting firm in a case involving an audit of a large company.

Cornerstone Research was retained by defense counsel for a national accounting firm in a case involving an audit of a large company. The plaintiffs claimed that the independence of the auditor had been impaired. We supported an accounting expert addressing issues related to the independence, both in fact and appearance, of the auditor. Our analysis of the audit workpapers and facts of the case revealed that no impairment of independence had occurred and that the plaintiffs’ expert had misinterpreted the relevant accounting and auditing authoritative guidance in developing his opinions.