The European Commission is calling on the business community and national regulators to establish a uniform standard of capping auditing firms’ legal liability for their work, a tacit admission that the accounting industry in Europe is stretched too thin to endure any disruption to the Big 4 auditors.
Hoping to bring order to the mixed bag of liability codes across the EU’s 27 member nations, the Commission has proposed four choices for auditor liability, and wants stakeholders concerned with the issue to provide their views by March 15. The ideas are:
