Auditor liability in accounting firm resignation

Brattle worked on behalf of a multinational accounting firm in a suit in which the firm’s client, a regional bank, alleged that the accounting firm had inappropriately resigned during an audit, resulting in increased fees charged by the successor accounting firm that completed the audit. Brattle supported an industry audit expert who examined the audit issues related to the allowance for loan losses and the reasons behind the accounting firm’s resignation. The audit expert concluded that the resignation was appropriate and warranted, in accordance with professional and industry practice. The matter settled favorably for our client.