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.’

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