Wyman warns of more big firm collapses
Peter Wyman, who will become ICAEW president on Wednesday, has warned that other accountancy firms face the same fate as Andersen, unless new rules limiting liability are introduced.
Andersen, the auditor of failed energy giant Enron, faces millions of dollars in claims from shareholders and creditors and most of its national arms have been sold off to rival firms.
Wyman told The Business the profession needed more protection to limit their liability from claims made by companies they audit. This provision should be included in the ‘Companies Bill’ said to be announced in the Queen’s speech in November.
He said that post-Andersen, many firms were already becoming selective about the clients they chose.
‘With some companies, however good the audit is, you can’t be confident that you won’t be exposed to claims.’