Move to limit auditor liability

THE Institute of Chartered Accountants in Ireland has responded positively to the statement from internal Market Commissioner, Charlie McCreevy, that he will recommend to member states that they take measures to limit auditor liability.

His remarks were made in a speech on statutory audit issues to the legal affairs committee of the European Parliament.

ICAI director of technical policy, Aidan Lambe, said the commission has identified the unlimited nature of auditor liability as posing a threat to the audit market because it inhibited large firms’ capacity to insure against this risk and has acted as an impediment to greater competition in the audit market.