PracticeAccounting FirmsAuditor protection draws closer

Auditor protection draws closer

Measures to protect auditors from potentially catastrophic legal claims could be introduced in the companies bill, currently going through parliament, according to reports.

Link: Wyman: ‘Act now to limit auditor liability’

Trade secretary Patricia Hewitt is considering either including them in the current bill or including them in the second companies bill, which is not expected before the next general election, the FT reported.

The FT claims talks between the Department of Trade & Industry and other departments are at an advanced stage.

A source close to the DTI is quoted as saying auditors were likely to be given the right to place limits on their liability with individual companies, subject to the approval of shareholders.

The Big Four have been campaigning long and hard for auditor protection following the disintegration of Andersen following the Enron scandal and other current negligence claims currently going through the courts.

However there is much opposition to the lobby for limited liability, particurlarly from big investor groups and from insurers.

The Association of British Insurers is completely opposed to any cap.

Related Articles

BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

3d 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

5d 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

7d Emma Smith, Managing Editor
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

2w Alia Shoaib, Reporter
Taylorcocks announces merger with Surrey firm

Accounting Firms Taylorcocks announces merger with Surrey firm

2w Emma Smith, Managing Editor
Kingston Smith reports 7% gender pay gap

Accounting Firms Kingston Smith reports 7% gender pay gap

2w Emma Smith, Managing Editor
RSM announces two partner promotions

Accounting Firms RSM announces two partner promotions

2w Emma Smith, Managing Editor
Backsourcing: The latest accountancy trend?

Accounting Firms Backsourcing: The latest accountancy trend?

1m Pillsbury Winthrop Shaw Pittman