Investors back restrictions on auditor liability

Investors back restrictions on auditor liability

Association of British Insurers says any move by accountants to agree a statutory limit on auditor liability would breach corporate governance principles

Investors will oppose auditors’ plans to push for statutory limits on their
liability, in a move that dashes accountants’ hopes for a speedy change to the
law, the Financial Times has reported.

Auditors face unlimited liability and have long lobbied to have this reduced,
the newspaper said.

Changes to UK law last year allowed them to seek a limit in agreements with
each of their clients, but the likelihood of any such deals being struck has
been effectively quashed by the opposition from the US Securities and Exchange
Commission to any US-registered UK companies doing this, the FT said.

Peter Montagnon told the FT that any move by accountants to make
current optional liability limits statutory would be ‘a problem’ for the ABI,
which represents many of the biggest institutional investors.

Further reading:

Limited
liability agreements blocked by US

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource