Euro. Comm. Recommends Limiting Auditor Liability; U.S. Treasury ACAP Debates Liability; Publishing Addendum For Comment
By Edith Orenstein, FEI Financial Reporting Blog - On June 6, 2008, the European Commission published a recommendation calling for EU Member States to develop liability caps for auditors of listed companies, or permit listed companies to develop such caps in consultation with their shareholders and governing boards, subject to judicial review and disclosure.
In related news, the U.S. Treasury Advisory Committee on the Auditing Profession (ACAP) heard from panels of experts on auditor liability and other topics at its meeting on June 3, and voted to formally publish in the Federal Register - and seek public comment on - an Addendum to its May 5 Draft Report.
Further details on the above topics can be found here.