A US Treasury panel fails to reach consensus on auditor liability
US auditors remain vulnerable to legal action after a Treasury Department panel failed to deliver any effective recommendations which would protect accounting firms from lawsuits threatening to close down their businesses.
The 21-member panel convened to improve the accounting profession was unable to agree on whether the current system was fair and rational or whether auditors needed protection from class-action lawsuits, Reuters reports.
The big four firms left after Arthur Andersen’s collapse in the wake of the Enron scandal and a series of mergers audit 98% of US companies, recording annual revenues of more than $US1bn, according to the US government.
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