Writing in Accountancy Age, lawyers from Barlow Lyde & Gilbert make clear the profession is facing a flood of claims. ‘Given market volatility, it is probably no longer a question of whether claims will be made against accountants, but how many,’ wrote BLG partner Andrew Howell and associate director Andrew Forsyth.

'The difficult accounting and auditing judgments made in the current environment are likely to be subject to close judicial scrutiny in a court room.’

The lawyers said significant revaluations of businesses in the wake of the sub-prime crisis and credit crunch would attract the attention of shareholders who have lost out, and potential litigation risk extended beyond audit work.

‘The current turbulence will require considerable care in relation to determining appropriate assumptions and identifying sensitivities, since recent past experience may no longer be such a reliable guide,’ the lawyers write.