I'm looking for some goog-phrases to find some cases, where 'reasonable expectation of adequate accounting' was a cause of action.
Logically where the complainant is a captive client, ie. of some guvmint-department, the abuse of non-decipherable accounts, and only after there has been a demand for accounting will be seen as unjust, and consequently many jurisdictions will have passed laws against such ?
Can anybody please point me to statutes or cases ?
TIA,
== Chris Glur.
wrote
You'd probably be best directed to some of the SEC rules and cases that involve public companies, as they most likely have specific instances of accounting irregularities that get litigated routinely as "the cause" of someone's loss. Investors often make the claim that they had a "reasonable expectation" that the financial statements were correct when they invested.
That's not to say that SEC rules, GAAP and so on can be followed to create "adequate accounting". What is adequate is defined by the users of the financial statements.
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