Company Law Reform Bill [HL]

For an accountant involved in an audit, being identified by his firm as senior statutory auditor will not of itself be an onerous role. The only responsibility that comes with the title is to sign the auditor’s report. Clause 492(2) provides that signing the report does not affect his individual liability. The amendments would broaden this to say that no other aspect of being senior statutory auditor will affect his liability and Amendment No. 317BA refers to ““being named”” in the auditor’s report. There is no way in which being named in a report can in itself make someone subject to a civil liability that he would otherwise not have been subject to. Nor is there anything else about the senior statutory auditor’s role that will affect his liability. The existing wording of Clause 492(3) therefore seems to us to say all that it is necessary to say about the potential liability of the senior statutory auditor. I am grateful for the opportunity to put that clearly on the record.