Making the accountants more accountable

Sir, in what might be a preview of things to come when the banks further consolidate into some very few, you reported on October 27 that Charlie McCreevy, the European Union Internal market commissioner, argues that the big four accounting firms need to be shielded from potentially ruinous lawsuits and that he might thereto propose a cap on their liabilities. Since there is nothing such as a cap on the harmful consequences an irresponsible audit could produce, this cannot be the right way to go about it. Perhaps what is needed, as a quid pro quo for the much easier marketing of their professional services that being in one of the four signifies, is to tighten the screws on the individual responsibility within the organizations. By following the money you could easily establish who are the real direct beneficiaries of any audit and with that what accountants to hold accountable. You want to work in one of the big four, precisely because they are one of the big four? Great, but of course that entails much more responsibility! The good news is though that a commissioner has offered to cap your individual financial responsibilities to only 100 times your earnings.

Charlie McCreevy European Union commisioner