What do BHS, Carillion, Conviviality, Quindell, Aero Inventory, the Co-op Bank, and London and Capital Finance have in common? They were all audited by the big four accountancy firms – PwC, KPMG, EY and Deloitte – which audit 97% of FTSE 350 companies and collect 99% of audit fees. In each case, these firms collected huge fees and delivered little of any public value. Their failure to spot the fragility of those businesses resulted in the loss of jobs, savings, pensions and tax revenues.
Yet the victims of these failures have no legal recourse to seek compensation because auditors owe a “duty of care” only to the company that hires their services, not to any individual stakeholder or creditor.Continue reading...
From our friends over at the : Business | The Guardian
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