PwC acts to limit risk on audit reports
PricewaterhouseCoopers is to change the wording on its audit reports in order to limit its risk from being sued by the banks of bankrupt companies.
Link: Wyman: ‘Act now to limit auditor liability’
The move comes in the wake of a Scottish legal case in July where the Royal Bank of Scotland claimed money from Glasgow-based auditor Bannerman Johnstone Maclay after saying it had relied on the audited accounts when deciding to make a loan to the company.
Future audit reports from PwC will now include the wording: ‘We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or in whose hands it may come save where expressly agreed by our prior consent in writing’.