Why Is Litigation Against External Auditors, Which Is Very Common

question 61

Multiple Choice

Why is litigation against external auditors, which is very common in the United States, virtually unknown in Japan?

• A) Japanese auditors rarely make mistakes in their professional work.
• B) Such litigation is inconsistent with Japanese values of interpersonal harmony.
• C) Japan lacks a sophisticated court system for handling complex cases involving accounting matters.
• D) External auditors are not responsible for the quality of work performed for a corporate client.

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Definitions:

Low-Context Cultures

Cultures where communication is direct, explicit, and relies less on context, background, and non-verbal cues for understanding.

Great Britain

Great Britain is an island in the North Atlantic Ocean off the northwest coast of continental Europe, comprising England, Scotland, and Wales.

Germany

A country in Central Europe, known for its rich history, culture, and economic influence.

Precise Intended Meaning

The specific, exact interpretation or definition intended by a speaker or writer, without ambiguity.