Ignore them at your peril

Article Abstract:

An increasing number of UK accounting and law firms are embracing mixed discipline practices (MDPs) whereby a single entity offers both accounting and legal services. Coopers & Lybrand has already partnered with Tite & Lewis, Price Waterhouse has linked with Arnheim & Co and Arthur Andersen has also entered the business of legal service through Garretts. Ernst & Young and KPMG are soon to follow in the footsteps of these pioneers. However, one-stop shopping has raised concerns about the independence of the professionals working for these firms and the conflicts of interest that may arise between the accounting and legal professionals. Moreover, these associations could prove to be a major tumbling block for medium and smaller practices, whose competitiveness will seriously be eroded.

Legal services, Offices of Lawyers, Accounting & Auditing Services, Accounting, Tax Preparation, Bookkeeping, and Payroll Services, Management, Evaluation, Law firms, Strategic alliances (Business)

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Should auditors fight legal cases?

Article Abstract:

Accounting firms are faced with the possibility of rising professional indemnity insurance rates as a result of a growing wave of litigations against auditors. A case in point is the out of court settlement of KPMG Peat Marwick with Ferranti PLC. KPMG was expected to defend its reputation in court and consequentially champion the fight to limit the extent of liability of an auditor. Its decline to take the challenge illustrates the lack of definition of an accountant's professional duties. It is this uncertainty that poses complications for insurers when justifying the cost of court action on insurance claims.

Cases, Laws, regulations and rules, Prices and rates, Insurance, Auditors, KPMG Peat Marwick L.L.P., Ferranti PLC

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The profession and the public

Article Abstract:

A 1990 survey conducted by KMPG Peat Marwick McLintock and MORI on the public perceptions and knowledge of auditors and audits surveyed 2,091 British adults on how much they knew abut accountants, auditors, management consultants, and solicitors. The survey reveals that many more respondents knew what solicitors did than knew what accountants and auditors did. In addition, more of the respondents had a favorable impression of solicitors than they did of accountants and auditors. A lack of communication by the accounting profession is the probable reason for the survey results.

Accounting, Auditing, Surveys, Public opinion, Great Britain, Peat Marwick McLintock, MORI

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