PracticeAccounting FirmsWyman dismayed at OFT conclusion

Wyman dismayed at OFT conclusion

PricewaterhouseCoopers' head of professional affairs, Peter Wyman, has expressed his dismay at the Office of Fair Trading's conclusions on a possible cap on auditor liability.

Link: OFT says audit cap effect would be ‘neutral’

Yesterday, the OFT said the affect of an audit cap on competition issues would be ‘neutral’ leaving the question of whether a cap would be able to prevent an Andersen-style collapse unanswered.

Wyman told The Times: ‘I’m dismayed that a fundamental part of the OFT’s conclusion is based on a misunderstanding of the insurance situation.’

He added that an increase in fees, which the OFT says can mitigate against the risk of claims, would not work ‘because [the Big Four] can’t get any insurance.

Similar disappointment was expressed by Neil Lerner, UK head of risk management at KPMG, who said: ‘We are disappointed that the risk of collapse of a major firm and the ensuing damage to competition has not been recognised.’

Related Articles

KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

3d Emma Smith, Managing Editor
Where is your next client coming from?

Accounting Firms Where is your next client coming from?

4d James Noble, Propero Partners
Specialist VAT service provider joins MHA

Accounting Firms Specialist VAT service provider joins MHA

5d Austin Clark, Reporter
Top 50+50: Big Four hold steady, shake-up outside Top 20

Accounting Firms Top 50+50: Big Four hold steady, shake-up outside Top 20

3w Emma Smith, Managing Editor
Top 50+50: Revenue rises spark rankings shake-up

Accounting Firms Top 50+50: Revenue rises spark rankings shake-up

3w Emma Smith, Managing Editor
Grant Thornton expands financial services regulatory team

Accounting Firms Grant Thornton expands financial services regulatory team

2w Austin Clark, Reporter
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2w Alia Shoaib, Reporter
Top 50+50: Firms fall short on diversity

Accounting Firms Top 50+50: Firms fall short on diversity

2w Alia Shoaib, Reporter