U.K. faces uphill task on audit liability limitation

U.K. faces uphill task on audit liability limitation

The Office of Fair Trading in the UK has produced a government-sponsored report that concluded that there is no need for any form of limitation of liability for auditors. The Big 4 and the Institute of Chartered Accountants in England and Wales now have only a short time to persuade the government t...

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Veröffentlicht in:Accounting Today 2004-09, Vol.18 (16), p.3-3
1. Verfasser: Reynolds, Bob
Format: Artikel
Sprache:eng
Schlagworte:
Accountants liability
Accounting firms
Accounting services
Analysis
Auditing
Auditors
Big Four accounting firms
Chartered accountants
Government regulation
Laws, regulations and rules
Liability insurance
Limit of liability
Scandals
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Zusammenfassung:The Office of Fair Trading in the UK has produced a government-sponsored report that concluded that there is no need for any form of limitation of liability for auditors. The Big 4 and the Institute of Chartered Accountants in England and Wales now have only a short time to persuade the government to introduce changes to the updated Companies Act that is currently making its way through Parliament. The easiest method would be to repeal Section 322, which presently prohibits auditors from agreeing a pre-arranged limit on any liability with clients. The OFT concluded that securing sufficient insurance is a current problem. However, it reasoned, the issue is a short-term matter and had no material impact on the market.
ISSN:1044-5714