EU Liability Media Statement
Responding to the European Commission (EC) recommendation limiting civil liability of statutory auditors and audit firms.
June 6, 2008:
Deloitte Touche Tohmatsu commends the European Commission for its intensive consideration of this complex issue. According to the Commission’s statement, the recommendation aims to encourage new entrants into the audit market, and to protect European capital markets by ensuring that audit firms remain viable in an environment where there is an increasing trend towards litigation, and a lack of sufficient insurance cover in the sector.
This recommendation also proposes principles to be followed by Member states when adopting the recommendation, including limitations not applying in the case of intentional misconduct on the part of the auditor, and a right to fair compensation by damages parties.
Deloitte believes the European Commission has given very careful consideration to issuing this recommendation, and it will help achieve the Commission’s goals and objectives.