Big four move to squash joint audit plan

News Article - 14 September 2006
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The UK will risk running foul of EU directives if plans to adopt joint auditing are passed, PricewaterhouseCoopers (PwC) has warned.

A change in auditing rules to allow joint responsibility was among the proposals put forward by the Hundred Group of finance directors to create more competition in the market.

The big four auditors reacted with hostility to the suggestion, with head of public affairs at PwC Peter Wyman warning that it could clash with the EC's eighth directive.

"The implication of the eighth directive is that it will not be possible for joint auditors to accept responsibility only for the work they have done," said Mr Wyman.

"From 2008 each auditor has to accept full responsibility for the entire body of work," he added, reports Accountancy Age.

"This was a key part of the eighth directive, and so far as I'm aware, supported by all 25 national governments as well as the European parliament and commission."

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