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s want a clarification of their duties impressed on Section 10A (Dickey and Minnery 2). Finally, instead of targeting on partner individually, criminal prosecution should be leveled against the audit firm.

Regulators too, want their watchful eye in the audit process. They are proposing to be given powers to have their appointed 'monitors' in audit firms suspected of systemic malpractices. A second proposal from government is seeking a fundamental shift of financial reporting from Generally Accepted Accounting Principles (GAAP) to 'principles-based' accounting (Dickey and Minnery 3). In SEC's view, GAAP is detailed with technical standards while 'principles-based' advocates an accounting judgment. A significant segment of the auditing profession opposed to the change has expressed concern over potentially greater exposure to auditor liability. Even in cases of legitimate judgment, a plaintiff can argue for the merit in an alternative judgment with a claim.

4.0 限制审计责任风险的途径Ways to limit audit liability exposure
Although there are signs of interest on regulators to hear auditors' concerns about excessive audit liability, in the meantime, auditors have to exercise utmost care in their audit practice. Avoidance of a high risk client is the first step (Laux and Newman 1). The risk is hinted by questionable company management, financial losses inconsistent with the industry trend and persistent lawsuits challenging previous financial statements. Auditors have also sought protection from litigation risk under indemnity agreements with the clients. The ethics of American Institute of Certified Public Accountants allow it where 'misrepresentation by management' was known beforehand (Dickey and Minnery 2). When it comes to SEC, though, indemnification casts a shadow on auditor independence.

Another caution auditors exercise is to demand that all correspondence with the client be in written documentation. Success in dismissal of frivolous cases is attributable for to risen pleading standards by the auditors. (Dickey and Minnery 1)

5.0结论Conclusion
The climate for audit is harsh to the profession. The common blame by investors over their role in companies that suffered huge shock in the recent financial credit crisis arise from misconception over their roles. The government is aware of the implication should a major audit collapse from lawsuits. In the meantime, auditors have to exercise utmost case in their conduct.

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