EC study favours auditor liability cap
EC-commissioned study revealed today will argue that a cap should be introduced
A cap on auditor liability could be a step closer when a study, expected to
be revealed today by the European Commission, will argue that a cap should be
introduced.
The call will put more pressure on European ministers to introduce a cap,
which would be a massive boost to the Big Four in their attempts to limit their
liability on audit work.
The study, by London Economics, concludes that a cap would reduce market
concentration and help firms retain experienced staff, reports the
Financial Times.
The European Commission has also promised its own report on the topic before
the end of the year.