Ralph Q. Summerford, president of Forensic Strategic Solutions, authored a blog for ACFE Insights titled “Accounting Malpractice and the Auditor’s Responsibility to Detect Fraud.” In the blog, Ralph discusses the case of Livent, Inc. v. Deloitte & Touche, in which the Ontario Court of Appeal upheld a 2014 decision ordering Deloitte & Touche (Deloitte) pay $118 million in damages to a theater company (Livent, Inc.) for which Deloitte performed auditing services. Ralph examines why Deloitte was held accountable for this large sum, and addresses the auditor’s responsibility to detect fraud.
Ralph will be speaking at the upcoming 29th Annual ACFE Global Fraud Conference in June. He will explore current trends into claims against accountants for alleged malpractice where a fraud scheme is involved, and conduct a deep dive into current legal cases where third parties attempt to recover losses from accountants’ alleged failure to detect a fraud scheme. His session will cover cases similar to Livent, Inc. v. Deloitte & Touche.
The full blog can be viewed here.