This document points out the Enron in 2001 and the Procomp in 2004, are the two great watersheds of progressive lawsuit risks confronted by the audit firms. Therefore, this study takes Enron and Procomp as line of demarcation to investigate whether the CPA’s human capital has been undergoing adjustment in response to the intensified lawsuit risks, to check if the offices gradually reinforce their human capital under the slowly rising lawsuit risks in order to maintain their reputation. The source of information is the “Investigation Report on CPA’s Service Industry” from the data bank of Taiwan Financial Supervisory Commission. Positivistic outcome shows conformity with the inference of this study, comparing with the period of low lawsuit risks, regardless of the adoption of type of strategy, either as an offender or analyzer by the specific CPA office, measuring index of CPA human capital had all been strengthened during the period of higher lawsuit risks, and this is particularly obvious with that after the Procomp.
