Big 4 firms dodge a bullet in the UK as the highest court dismissed a negligence lawsuit against an accounting firm that failed to detect fraud that brought down a trading company. The ruling will significantly limit the firms’ liability in cases “where a determined criminal drives a company to financial ruin”.
Doesn’t make sense to us, since if you can’t make auditors accountable, who the hell is accountable? Hey, whatevs, we’re sure the Big 4 and other accounting firms won’t be celebrating long anyway, since a ruling like this won’t happen in the States, which is where the serious money gets handed over.
Auditors win ruling over Madoff-style frauds [FT.com]
UK Court Decides it Will Leave the Major Lawsuits to the Americans
Big 4 firms dodge a bullet in the UK as the highest court dismissed a negligence lawsuit against an accounting firm that failed to detect fraud that brought down a trading company. The ruling will significantly limit the firms’ liability in cases “where a determined criminal drives a company to financial ruin”.
Doesn’t make sense to us, since if you can’t make auditors accountable, who the hell is accountable? Hey, whatevs, we’re sure the Big 4 and other accounting firms won’t be celebrating long anyway, since a ruling like this won’t happen in the States, which is where the serious money gets handed over.
Auditors win ruling over Madoff-style frauds [FT.com]
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