Auditors’ Liability

Recommendation concerning the limitation of the civil liability of auditors

The European Commission has issued a Recommendation concerning the limitation of the civil liability of auditors. It is accompanied by the publication of an impact assessment for this initiative.

• Press release (06.06.2008)
• Frequently asked questions
• Text of the Recommendation
• Impact assessment
  • full text in English only
  • executive summary

Commission consults on possible reform of liability rules in the EU

The European Commission has launched a public consultation on whether there is a need to reform rules on auditors’ liability in the EU and on the possible ways forward. This follows an independent study on the economic impact of current auditors' liability regimes and on insurance conditions in Member States (IP/06/1307). The Commission has presented four possible options for reforming auditors' liability regimes in the EU and has invited stakeholders to give their views on the issues involved.

• Press release (18.01.2007)
• Consultation
  • Annex I
  • Annex II

The public consultation on possible reform of auditors' liability rules in the EU (known as 'auditors' liability') has been closed on 15 March 2007. The contributions authorised for publication and the summary report are available here.

• Press release (18.06.2007)
• Summary report

Forum on Auditor's Liability

• Press release (15.11.2005)

The European Commission has set up a European Forum to gather market players’ views on limiting financial burdens for auditors. The Forum will consider market-led solutions to mitigate litigation risks. The Forum comprises twenty market experts from various professional backgrounds (such as auditors, bankers, investors, companies, insurers and academics) with particular experience and knowledge of the subject.

Meetings

Date	Summary Record
19.07.2006
21.06.2006
16.05.2006
04.04.2006
10.03.2006
20.01.2006
13.12.2005
23.11.2005

Study on Auditors' Liability

The European Parliament and the Council invited the European Commission, under the Statutory Audit Directive (Directive 2006/43/EC), to analyse the economic impact of current EU rules on auditors' liability regimes and the insurance conditions in Member States. The analysis should focus on the impact for capital markets. As a first preparatory step, the Commission Services have commissioned the consultancy firm London Economics to study these issues on an EU-wide scale. The preparation of the study has been accompanied by the creation of an Auditors Liability Forum composed of market experts.

• Press release (4.10.2006)
• Executive summary 
• Full text for downloading
• Corrigendum
• The invitation to tender

Documents

• Study on civil liability of statutary auditors (15 January 2001)
• "Green Paper on the role, the position and the liability of the statutory auditor within the European Union", European Commission, 1996
  • Full text for downloading
    
• "Act of the conference on the role, the position and the liability for the statutory auditor in the European Union", 1996
  • Full text for downloading
    

Speeches

• Address to the Global Public Policy Symposium, given by the Commissioner Charlie McCreevy at the Global Public Policy Symposium on 20 October 2005