"Audit firms are finding it difficult to persuade their clients even to consider an LLA."
Since 6 April 2008, auditors have been able to agree with a company whose accounts they are auditing a contractual limit on their liability to the company. Yet, almost eighteen months on, very few companies have actually entered into limitation of liability agreements (LLAs) with their auditors.
In addition, it seems increasingly unlikely that the changes introduced under the Companies Act 2006 will be sufficient to deliver the wider public policy objectives of alleviating concerns relating to auditor concentration risk and enhancing competition within the UK audit market.
See full Article.
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