Brussels, 18/01/2007 (Agence Europe) - On Thursday, the Commission opened consultation on whether there is a need to reform rules on auditors' liability in the EU. The four possible reform options presented by the Commission are based on an economic impact study published by an external consultant, London Economics, in October 2006, which was in favour of restricting auditors' liability but recommended that no harmonised action be taken at European level (EUROPE 9281). Commissioner McCreevy is careful not to press for harmonisation saying: “Given the differences between national markets, there is probably no one-size-fits-all approach”. Third parties interested are invited to give their views on the four possible reform scenarios by 15 March 2007. These scenarios are: (a) introduction of a fixed monetary cap at European level; (b) introduction of a cap based on the size of the audited company, as measured by its market capitalisation; (c) introduction of a cap based on a multiple of the audit fees charged by the auditor to its client; and (d) the introduction by Member States of the principle of proportionate liability.
For further information: http://www.ec.europa.eu/internal_market/auditing/liability/index_en.htm (ab)