PracticeAuditAuditors win liability victory but at a price

Auditors win liability victory but at a price

The profession is set to win its battle for proportionate liability, after it emerged that new amendments to the company law reform bill were likely to be published this week

The changes had been in doubt after last week’s cabinet reshuffle, which saw
Alistair Darling (pictured) take over as secretary of state at the DTI.

The current wording of the company law reform bill had led to fears that
auditors would be forced to negotiate a monetary liability cap with clients,
rather than on the hoped for proportionality basis.

But it is understood that the DTI has been working tirelessly behind the
scenes to ensure the amendments go ahead.

The victory for auditors, will come at a price for large firms, however.
Further amendments are to be introduced that will allow the government to remove
any agreement where there appears to be concern over competition.

A DTI spokesman said the department was looking to bring forward amendments
to clarify the audit liability issue. The spokesman added that there was, as
yet, no confirmed timetable for making the changes.

For more, visit dti.gov.uk

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

1d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

1w Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

1w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor