PracticeAuditLiability spreads to Europe

Liability spreads to Europe

Limited liability for auditors could become European law before the end of the year

Limited liability for auditors could become European law before the end of the year, after intensive lobbying by the profession found sympathetic ears in Brussels.

Link: McCreevy likens published accounts to ‘bikinis’

It had initially been thought that the eighth company law directive would pass through the European parliament too soon to allow auditor liability to be addressed, but representations from the ICAEW and the Big Four, among others, have seen recommendations for its inclusion emerge.

Rapporteur Bert Doorn advised: ‘This directive should require member states to take appropriate measures to limit the financial liability burden of auditors and audit firms.’

Three other rapporteurs also suggested amendments to the directive that would allow various forms of liability limitation, but the recommendations will not be put to the vote until 24 May.

Tony Bromell, head of accountancy markets at the ICAEW, added that the existing liability regimes across Europe ‘varied wildly’ and it would be sensible to establish some sort of framework.

Related Articles

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

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

4d 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

5d Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

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

2w 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
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2m Alia Shoaib, Reporter