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:

Mass

A measure of the amount of matter in an object, usually in kilograms or grams in the metric system.

Accurate

Describes a measurement or result that is close to the true value.

Mass

A measurement of the amount of matter that an object contains.

Sample

A small part or quantity intended to show what the whole is like, used for analysis or investigation.