New York partner Steve Rinehart, assisted by Troutman Sanders lawyers Matthew DeFrancesco, Marilyn Batonga and Phil DiMola, recently published "Accountant's Liability Under the Federal Securities Laws," Chapter 5A in the Matthew Bender treatise Federal Securities Exchange Act of 1934. The chapter traces the development of theories of accountants' liability from its common law origins to the latest pronouncements of the Private Company Accounting Oversight Board (PCAOB).
The revised and updated installment examines the Omnicare and Halliburton decisions and their implications with respect to the potential liability of accountants. It also includes a discussion of the PCAOB's recent enforcement efforts and rulemaking, with particular emphasis on auditors' communications with audit committees, related party transactions, and significant unusual transactions.
The PCAOB also has proposed new standards that would significantly expand the content of reports on audited financial statements.
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