The U.S. Court of Appeals for the Sixth Circuit has referred questions to the Pennsylvania Supreme Court in a case involving PricewaterhouseCoopers that could set a precedent for accountant liability.

The case revolves around the creditor's committee for the bankrupt Allegheny Health, Education and Research Foundation. A group of officers, including the former CFO, admitted to knowingly misstating AHERF's finances in the figures they provided to PwC in 1996 and 1997. The court needed to decide whether the creditor's committee has the right to sue PwC for knowingly assisting in the AHERF officers' misconduct by issuing clean audit opinions before the company collapsed in bankruptcy in 1998. PwC won the first round of litigation in a lower court, according to Law.com.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access