ACCOUNTING MALPRACTICE – The D.C. Circuit reversed a ruling against the Grant Thornton accounting firm, which challenged an order requiring it to pay $300,000 for recklessly failing to meet generally accepted auditing standards in its audit of a bank. The court ruled that when an accounting firm audits a bank’s books to verify their accuracy, the firm is not engaging in “the business” or “the affairs” of the bank. Thus, Grant Thornton did not engage in reckless auditing when it relied on the bank’s ownership of $236 million.
- Court Of Federal Claims
- 2nd Circuit