News Article - 28 December 2006
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Representatives from Institute of Chartered Accountants of Scotland (Icas) are calling for greater clarity in limited liability agreements (LLAs) in a bid to improve the quality of information in audit reports.

These recommendations come ahead of the implementation of the new Companies Act, due to come into affect by October 2008. Icas maintains that effective guidance on LLAs should be in place ahead of the Companies Act, arguing that efforts need to be made to ensure maximum transparency.

Icas also stresses that new rules should be subject to the necessary due process whilst also facilitating healthy competition.

"There is now a real need for the FRC to produce guidance to assist all the parties who will be affected by this change," commented Icas president, Norman Murray.

"It is not just at the listed company sector where this guidance will be useful," he continued. "Auditors of all sizes of companies will be able to enter into negotiations with their clients to establish such agreements."

It is thought that the uptake of LLAs could benefit small and medium sized business in the deployment of business solutions in their ongoing operations.

Recent reports indicate that many companies are still unaware of how the Companies Act will affect them.

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