Forex

Commenting on the publication of guidance on the adoption of limited liability agreements by the Financial Reporting Council, Michael Izza, chief executive of the Institute of Chartered Accountants in England and Wales (ICAEW) has urged companies in the UK to implement the guidance in their next financial reporting cycle.

He said: “Government has recognised the importance of limiting liability for auditors, not least because of the potential damage to the UK and global economies if one of the larger firms were to collapse. Auditors should be liable for their own mistakes but not those of others. Following the publication of this guidance, I would urge all listed companies to take the necessary steps to put in place limited liability agreements as part of their next financial reporting cycle.”