“The issue does not appear to be the number of merit less lawsuits that are filed, but
the fact that potential claims against the major accounting firms can be so large that
a judgment in any one case might force a firm into bankruptcy and result in further
consolidation of the audit profession.”
Conrad Hewitt, Chief Accountant, Securities and Exchange Commission
Auditors can discuss limits to liability - Financial Times, July 1, 2008
EU calls to limit auditors’ liability - Financial Times, June 6, 2008
Accountants counting the cost of litigation risks - pdf - Law Times, May 12, 2008
Standards needed - pdf - The National Post, September 19, 2007
Accountants campaign for reforms; Want parties to promote standards, change liability laws - pdf
The Sault Star, September 19, 2007
Big Players pushing for liability change - pdf - The Bottom Line, June 1, 2007
The Case for Legal Liability Reform - wmv - Ottawa Citizen Business TV courtesy of www.rogerstelevision.com, June 22, 2006
Proposed new standards sent to Ontario Attorney General - pdf - The Bottom Line, June 1, 2006
Risking business: the case for auditor reform - pdf - National Post, May 24, 2006
ICAO secures change to CA Act - pdf - The Bottom Line, April 1, 2006
CAs lobbying to change Ontario negligence law - pdf - The Globe and Mail (Metro Edition), April 19, 2006
Liability Limits: Does Harper offer new hope? - pdf - The Bottom Line, April 1, 2006
Share the liability, spare the accountant, says Institute Chair - pdf - The Sault Star, March 15, 2006
Outdated liability laws harming economy: ICAO - pdf - The Financial Post, June 29, 2005
Canada needs flexible accounting regulations, expert says - pdf - ADVISOR.CA, September 14, 2004
Accountants call for reform in liability laws - pdf - ROB, The Globe and Mail, September 20, 2004
Brian Hunt discusses the need for stricter Federal regulations to govern legal liability and other accounting practices on CFRA's Business@Night - swf - News Talk Radio 580 CFRA January 8, 2008
Brian Hunt discusses the CA Competitiveness Agenda on CFRA's Business@Night - mp3 - News Talk Radio 580 CFRA, September 28, 2007
Fighting a waste: Jamal - pdf - The Bottom Line, February 26, 2008
- Chris Clark, CEO of
PricewaterhouseCoopers LLP - The Bottom Line, June 2007: "Proportionate liability would help make our capital markets more efficient, maintain strong audit firms, manage audit cost, provide more market choice and improve reporting models.” - From Accounting for the Future: Down to four big firms and fearing the effects of even one major suit, the audit industry presses for legal relief - The Washington Post, March 9, 2007: “The future of the accounting industry may depend on the answer to a single question: With only four major firms left in the business, are there too few to let any fail? …The firms and their Washington allies warn that the companies are vulnerable to big verdicts that could steer them out of business, leaving clients with few choices, driving up costs, and throwing investors and markets into disarray.”
- From Audit liability: Will one size fit all? – Accountancy Age, February 22, 2007: “The European Commission has recently published a report that seeks views on four different possible approaches to limiting auditor liability in the EU. The four options are: One single monetary cap on liability set at EU level; A cap on liability depending on a company’s size;A cap on liability depending on the audit fees charged by the company; and Proportionate liability."
- From Liability reform must be remedied to ensure strong audit profession - The Irish Times, February 16, 2007: “Data provided to London Economics in 2006 … showed there were 16 cases in the EU where damages sought from the larger accounting firms were in excess of $200 million U.S. Across Europe, lawmakers and regulators have been responding by providing some protections for audit firms in the event of catastrophic claims.”
- From SEC’s top accountant favours limiting auditors’ liability, reduce complexity of rules – Dow Jones Newswires, January 25, 2007: “Big accounting firms should consider asking Congress for greater protection from lawsuits in the event of financial blowups at companies they audit, the top accountant at the Securities Exchange Commission said … A handful of European countries already limit auditors’ liability and Britain is considering adding a proportionate cap on auditor liability.”
- From BDO Seidman case gears up – The Miami Herald, January 16, 2007: “Accounting firm BDO Seidman never earned more than $75,000 a year in fees in the five years it audited E.S. Bankest … Nevertheless, BDO Seidman is being sued for at least $170 million … A jury verdict against the firm could lead to job losses for thousands of its accountants, auditors and staff.”
- From Auditors say EU has a case to cap their liability – Reuters News, June 7, 2007: “A public consultation has given the European Commission enough backing to press ahead with capping how much auditors can be sued for their clients’ faulty accounting practices, (say) top accountancy firms …The firms want a system of proportionate liability such as the one introduced in Britain where auditors sign contracts with their clients laying down the extent of liability in the event of a court case.”