'... unlimited liability combined with insufficient insurance cover is no longer tenable' - Charlie McCreevy
The European Commission has recommended that member states limit the liability of auditors to encourage growth of alternative firms in the competitive market.
The recommendation follows consultation on the issue, and also responds to the increasing trend of litigation against firms who are not sufficiently covered by insurance that could prevent a network failure.
The Internal Markets Commission, which made the recommendation, has left it up to the individual countries to decide on how they will decide on the appropriate methods of limiting liability with options including proportional liability, capped liability.
See full Article.
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