Audit negligence claims increase following crisis
Law firm reports spike in high court cases
Auditors could be hit with a surge of negligence in the wake of the crisis
with research revealing there were more negligence claims during the last twelve
months, than the previous five years combined.
Negligence cases which reached the High Court jumped from four in the past
five years, to 13 law in the last year, law firm Reynolds Porter Chamberlain
told
The
Times.
Jane Howard, partner with RPC, attributes the jump in cases to the financial
crisis.
“The sudden jump in professional negligence claims suggests that cases
relating to the credit crunch have started to reach the courts,” she said.
The statistics come as Big Four firm Ernst & Young prepare for a possible
class action in the United States, following the release of a damaging report
into its audit of US bank Lehman Brothers.
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Accounting
firms facing rise in negligence claims amid credit crunch fallout