‘Reckless’ auditing offence will cost £250m

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.

Related reading