12626. A HISTORY OF AUDITORS' LIABILITY. Traces the history of auditors' liability from 1896 to the early 1990s, noting how the professionalization of the industry and the increasing complexity of business worked to expand the auditors' scope of liability. Explains auditors' liability under theories of fraud and negligence. Discusses the three main approaches to assessing auditors' liability for negligence: 1) Privity; 2) Restatement (Second) of Torts; and 3) foreseeability. Provides an extensive discussion of the major case law supporting these approaches. Concludes with an overview of auditors' liability under federal and state securities and RICO statutes. 22 pages, 107 footnotes in text, 41 bibliographic sources.