What are some major factors that have contributed to the recent increase in the number of lawsuits against auditors and the size of awards to plaintiffs?

Answer and Explanation:

There are several reasons why the number of lawsuits against auditors and the size of awards to plaintiffs has increased. Mainly, Certified Public Accountant (CPA) firms are most likely to solve legal issues with companies in front of inaccuracies in audits without a judicial process to avoid the fees, possible penalties they will have to take charge if found at fault. Thus, more lawsuits are created under that situation because those practices are not considered legal even if the plaintiff decides to come up to a resolution that way. This is because firms could still be operating unethically unless the law enforces laws in their operations.

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.