Note:
John S. Dzienkowski, Accountants’ Liability for Compilation and Review Engagements, 60 TEXAS L. REV. 759 (1982).
 

Abstract:
In this Note, the author discusses the adequacy of the Statement on Standards for Accounting and Review Services No. 1 issued by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants as a standard of accountants’ liability for negligence in unaudited engagements. The Note then analyzes case law pertaining to negligence standards for unaudited financial services and criticizes decisions refusing to recognize the profession’s previous standards. Finally, the Note proposes solutions to help accountants minimize liability and puts forth a theory for judicial scrutiny of an accountant’s allegedly negligent conduct.