Ewert, Ralf; Feess, Eberhard; Nell, Martin - In: European Accounting Review 9 (2000) 3, pp. 371-385
This paper examines auditor liability rules under imperfect information, costly litigation and risk-averse auditors. A negligence rule fails in such a setting, because in equilibrium auditors will deviate with positive probability from any given standard. It is shown that strict liability...