Financial Damages Experts Opine on Auditing Firm Negligence

Case Overview

This is a professional negligence case against a large auditing firm. The defendant firm was performing the audits for a property insurance firm in Texas. Insurance companies are required to maintain a certain amount of liquidity, however the property insurance firm had been operating without adequate cash reserves. It was alleged that the auditing firm was approving transactions off of the balance sheet that made non-cash assets look like cash. As a result of this, an eventual investigation into the insurance company’s financials caused the firm to fold within a matter of weeks, leaving thousands unemployed.