PracticeConsultingAudit – ACCA brands IFAC report ‘biased’

Audit - ACCA brands IFAC report 'biased'

ACCA has slammed a report on auditor liability, which was commissioned by a taskforce of the international accountants’ federation IFAC.

The report, branded as ‘biased and lacking in intellectual rigour’ by ACCA, was prepared by consultancy London Economics. The executive summary of the report said: ‘Excessively severe audit liability should be of concern not just for accountants, but for those concerned about the economy at large. This is because of the adverse effects that severe audit liability can have on the efficiency of capital markets and on corporate governance.’

Mary-Louise Wedderburn, at the technical services department at ACCA, said: ‘None of its arguments is backed up by recent relevant research.’ She said it backs the Big Six which are openly against unlimited liability and the report equates quality only with Big Six firms. ‘It is an apologist charter for the Big Six and could damage the cause for reform,’ she added.

John Gruner, IFAC’s director general, said: ‘If the auditor has to step away as a result of unlimited liability, it is the client that suffers as well.

So ultimately it is not just the auditor but society as a whole that suffers’.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer