PracticeAccounting FirmsScottish accountants support liability cap

Scottish accountants support liability cap

The lobby pushing for a limit on auditor liability has been boosted after gaining the support of the Institute of Chartered Accountants of Scotland.

Link: Boost for liability overhaul

ICAS said it was in favour of allowing auditors to negotiate liability caps with audit clients.

These it says, ‘should be subject to safeguards set out to safeguards set out in statutory rules – so that sufficient liability remains to ensure audit quality’.

The institute issued its remarks in response to the DTI’s consultation on director and auditor liability, published in December last year.

David Wood, deputy director of accounting and auditing, said: ‘We would support a cap based on some multiple of the audit fee, as the audit fee would generally be a reasonable proxy for the size, risk and complexity of the client. The audit fee multiple which established the amount of the lowest permissible cap would need to be significant enough to ensure audit quality but should not be so large to threaten firms’ survival’

Related Articles

Productive accountancy firms lead the way

Accounting Firms Productive accountancy firms lead the way

3d Simon Adcock, HSBC
LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

Accounting Firms LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

4d Fergus Payne, Lewis Silkin
BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

1w Alia Shoaib, Reporter
Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

Accounting Firms Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

2w Philip Smith, Reporter
Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

Accounting Firms Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

2w Emma Smith, Managing Editor
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

3w Alia Shoaib, Reporter
Taylorcocks announces merger with Surrey firm

Accounting Firms Taylorcocks announces merger with Surrey firm

3w Emma Smith, Managing Editor
Kingston Smith reports 7% gender pay gap

Accounting Firms Kingston Smith reports 7% gender pay gap

3w Emma Smith, Managing Editor