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.
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.’