Description

The second edition focusses on the difficult legal issues surrounding the liability of accountants in negligence claims. It covers statutory and non-statutory audits, tax advice, specified procedures reporting, due diligence reports and corporate finance reporting. It looks at the scope of losses for which the accountant may be liable with detailed reference to case law as well as money laundering and regulatory issues. Limitation and contributory fault are considered with special reference to accountants’ cases.

The following important developments and case law is included:

• Lowick Rose LLP v Swynson Ltd & Anor[2017] UKSC 32 on transferred loss
• BPE Solicitors & Anor v Hughes-Holland [2017] UKSC 21 on scope of duty and the SAAMCO principle
• Steel v NRAM Limited [2018] UKSC which revisited the Caparo test for establishing a duty of care
• The SAAMCO principle (the scope of a professional’s duty for claimed losses) was also considered by the Court of Appeal in Manchester Building Society v Grant Thornton UK LLP [2019] EWCA Civ 40
• AssetCo v Grant Thornton [2019] EWHC 150 (Comm), a controversial decision in which an auditor was held liable for trading losses caused by management fraud
• Deloitte & Touche v Livent

Contents:

Part 1 – Introductory

1. Introduction and general principles

Part 2 – Auditing

2. The legal framework of auditing
3. Regulatory framework of auditing
4. Characterising the auditor’s relationship with the company
5. Caparo: the objects and scope of the Auditor’s duty of care in tort
6. Applications of Caparo
7. Audit liability – for what losses?
8. Audit liability – for what conduct – standard of care – watchdog/bloodhound or some other dog?

Part 3 – Non-audit liability of accountants

9. General principles
10. Accounting other than statutory audit
11. Other liabilities –
12. Conflicts of Interest and confidential information
13. Tax liabilities including regulatory risks.
14. Insolvency liabilities

Part 4 – Defences
15. Limitation – time bar
16. Contributory fault of claimant and contribution from others
17. Failure to mitigate – eg pursuing overpaid dividends or bonuses.
18. Contractual limitations of liability
19. S727 CA85, s1157 CA0620. Illegality

Part 5 – Issues arising in litigation concerning accountants
21. Disclosure.
22. Expert evidence

Part 6 – Regulation and money laundering
23. Professional discipline regimes (CCAB, FRC, PRA).
24. Money laundering, incl. ICAEW Rules.