Limiting Audit Firms' Liability:A Step in the Right Direction?(Proposals for a New Audit Liability Regime Revisited)
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This paper considers the responses of six audit firms, to the four options presented by the
European Commission in reforming auditors’ liability. Whilst agreeing with a limitation in
audit firms’ liability, it does not consider the means of limitation, as provided by the
European Commission in its Recommendation, to be the best means of limiting auditors’
liability. In proposing a means whereby not only a limitation of audit firms’ liability can be
achieved, but also one which would serve as a better means of facilitating harmonisation, the
paper makes reference to the variants presented in the author’s paper “Proposals For a New
Audit Liability Regime”, namely a combination of the first and third options. Further, the
wide scope permitted by the Commission in leaving it to Member States to decide upon the
appropriate method for limiting liability and the means of limiting liability, as the paper will
seek to illustrate, do not present the best opportunities in realising the goal of harmonisation
Keywords
HG Finance