A Brief History of Accounting Scandal and Regulation.

This is a team assignment. You only need to answer questions in #1 and #2. Then, my team will wrap up the whole case later. 1) Regarding litigation towards CPA firms, should there be a higher bar to bring successful litigation claims? Should the level of damages be capped for CPA firms? If litigation risk is not a meaningful deterrent, how do CPA firms respond? 2) Was SOX the appropriate response to the numerous accounting frauds that occurred in the late 1990s? Was it too much regulation or too little?