Wyman wants more protection for industry
Peter Wyman, president of the ICAEW, has urged the government to provide accountants with extra protection against catastrophic negligence claims.
His argument is that it is extremely difficult to discover fraud if senior management wishes it to remain hidden. Ministers, however, have refused to allow auditors to cap their liability in any investor litigation that arises from the publication of flawed accounts.
Wyman said the Big Four accountancy firms could be reduced to three unless something was done. And in the meantime one or more may decide to stop auditing if the risks remain too great.
He was speaking at the World Congress of Accountants, which ends today in Hong Kong, and while saying that uncapped liability is unfair, he argued that a system of proportionate liability would be far better.