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Auditors will be able to limit their liability.
From April 2008, provided that the company’s shareholders consent, auditors will be able to sign an agreement with the company limiting their liability.
Coupled with the introduction of limited liability, there are also two new offences of knowingly or recklessly including materially misleading information in an audit report or failing to include required information in the audit report.
The Companies Act explained
Part 1: the longest piece of legislation ever
Part 2: timetable for introduction
Part 4: claims against directors
Part 7: greater rights for non-registered shareholders
Part 8: deregulation for small businesses
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