Auditor's liability: the Likierman Report and its aftermath

Article Abstract:

The report of the study teams under Professor Andrew Likierman that researched aspects of auditors' liability was published in October 1989. The study finds that auditors are exposed to potential liability on a large scale but are limited from negotiating liability limits. In addition, insurance is not available at the levels large firms need. The report finds that the large costs of liability will have a negative impact on the services rendered and recommends that a change in the law of several and joint liability should be considered by the Law Commission; that directors' and officers' insurance use should be encouraged and facilitated by the government; that the Law Reform Act of 1945 should be amended to make negligence of a plaintiff relevant to the award in cases involving breach of contract; and that the Companies Act 1985 should be amended to allow companies' auditors to limit liability.

Malpractice, Auditors

---

Auditors and supervision

Article Abstract:

The UK Companies Act 1989 incorporates into law the European Commission's Eighth Directive on the qualification and regulation of auditors, and will greatly affect the relationship between professional bodies, their members, and the government. The Act introduces minimum educational qualifications for auditors and designates the Secretary of State as the approval authority for recognized supervisory bodies. The Act removes the prohibition against corporate bodies being appointed company auditor, prohibits an auditing firm from auditing a company in which it holds shares or which holds shares in it, and makes auditors ineligible if they are not sufficiently independent. In the areas of the appointment and removal of auditors, the Act stipulates that auditors need not be reappointed annually, and extends the rights of auditors ceasing to hold office.

United Kingdom, Accounting and auditing, Supervision of employees, Employee supervision

---

The Benevolent Association - a limited liability?

Article Abstract:

The accounting profession has been slow to produce worker benefits, leaving the Benevolent Association with an important job. The creation of long-term health plans, death-in-service coverage, and pensions should be allowed and encouraged. Once the profession accepts limited liability status, the accounting profession will up to par with its customers from commerce and industry.

Planning, Scotland, Employment, Associations, Accountants, Charities, Employee benefits, Charitable societies

Similar abstracts:

• Abstracts: Accuracy and reliability of a technique for quantifying foot shape, dimensions and structural characteristics
• Abstracts: Professional Liability of Accountants and Auditors. Law at PE I: Perpetuities, Accumulations. Law at PE I: Duration of Partner's Liability
• Abstracts: How do CFOs evaluate the annual report? How CFOs spend their time. An analysis of response bias in executives' self-reports
• Abstracts: Planning to survive. Planning out the twists and knots
• Abstracts: Property-related debt: a map of the minefield. Flexibility and the food industry's future

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.