New legislation that could limit the liability of auditors would benefit the whole of London’s financial sector, an industry expert has claimed.
Next month’s scheduled legislation changes will reportedly enable companies to implement agreements that would limit auditor liability.
Such moves have been backed by John Griffith-Jones, chairman of Accountancy firm KPMG, who insists they have the potential to be of benefit to “everyone” involved, despite not yet knowing how many companies will agree such deals with their auditors .
Speaking to the Financial Times, Mr Griffith Jones explained that although it may not be in the interest of individual companies to limit their auditor's liability, carrying out such a move would mean there is less chance of the market having to deal with the turmoil caused by the collapse of a major accountancy firm .
"There is a feeling among some that we're all doing well enough without this, but it is classic safety legislation that needs to be there," Mr Griffith-Jones added.
KPMG Head Backs Move To Limit Auditor Liability
Tue, 25 Mar 2008
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