EU to consult on auditor liability cap
The end result could have major consequences for Big Four
The way the Big
Four do business could change significantly if a
European Union public consultation to examine
placing a cap on auditors’ liabilities is successful, according to
The Business.
The aim of the cap would be to prevent another Arthur Andersen-style
collapse, which happened in the wake of Enron.
Brussels has been examining for some time ways of protecting firms against
ruinous lawsuits.
The Business has learnt that Charlie McCreevy, the EU Internal
Market commissioner, is to launch a public consultation on how a pan-EU cap
would work.
The Big Four audit the books of nearly all the world’s quoted companies.
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