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:

Reflective Process

A cognitive mechanism by which individuals examine and analyze their own thoughts, feelings, and behaviors.

Controlling Biases

The practice of recognizing and attempting to minimize or eliminate biases in one's judgments and decisions.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, driving individuals to pursue specific objectives.

Awareness

The state or ability to perceive, feel, or be conscious of events, objects, or sensory patterns.