According to the FT, FEE believes this is vital to ensuring the Big Four are not reduced to three or fewer, following the collapse of Andersen under a mountain of negligence claims over its audit work at collapsed energy trader Enron.
David Devlin, FEE president, said reform should see a liability cap based on a multiple of a company’s audit fees.
FEE wants the reform demands to be put to the EU by the European Commission by April or May.
However it is likely to be met with some resistance from member states, who are reluctant to restrict liability given the profession’s poor reputation following a spate of global accounting scandals headlined by Enron, WorldCom, Tyco and Xerox.
Already in the UK, Big Four firms PwC and Ernst & Young have moved to limit their liability by publishing disclaimers at the end of their reports.
HMRC breaches client confidentiality; and partner profits fall at EY. These stories and more discussed in Friday Afternoon Live
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
Six new partners have been revealed by top ten firm Mazars