'Reckless' auditing offence will cost £250m
CBI puts a figure on the potential cost of the proposed criminal offence of reckless auditing
The CBI has warned that the proposed criminal offence for reckless auditing
could cost business more than £250m.
The proposal, contained in the company law reform bill, could see auditors
handed a jail sentence for ‘knowingly or recklessly’ allowing material that is
‘misleading, false or deceptive’ into audit reports.
CBI has already complained vocally about the reckless auditing clause. The
extra costs of the move would derive from box-ticking and double-checking that
would drive higher audit fees, the industry body told the FT.