Investors win latest audit battle

Investors are confident they have won their battle to ensure amendments to
the company law reform bill, that could have dramatically reduced the scope of
auditor responsibility and liability, won’t be accepted.

Representations with the government had been sought to make investor feelings
clear on proposed amendments by Baroness Noakes to clauses in the bill on the
duty to keep accounting records and the duties of auditors.

Fears were rife that the changes would mean auditors would no longer have to
ensure that proper accounting records were kept by the company, potentially
damaging audit quality and hiding risk.

Following a short campaign to spark investor reaction to the amendments,
confidence has grown that the key changes that would have had the most dramatic
effect are now a ‘non-runner’.

But other amendments that would change the requirement to keep ‘proper’ books
and records to ‘adequate’ may still go ahead.