Incorporation of auditing practices: some legal aspects

Article Abstract:

The repeal of section 389 of the Companies Act of 1985, which prevented corporate bodies from serving as auditors, by section 212 of the Companies Act of 1989 effectively paves the way for the incorporation of auditing practices. The decision on whether or not to incorporate an auditing practice must be based on a careful consideration of the relative advantages and disadvantages of such a move. The advantages of incorporation include limited liability and improved ability to seek third party finance, while the disadvantages include disclosure of accounts and added tax implications.

Partnership, Partnerships, Incorporation, Great Britain

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Taking an ethical lead

Article Abstract:

The details of the five exposure drafts of proposed ethical standards on the integrity, objectivity and independence of auditors issued by the Auditing Practices Board (APB) in November 2003 are presented. The exposure draft includes the fundamental concepts that apply to auditors' consideration based on threats and safeguards, specifications in relation to tax services, and corporate finance.

Management dynamics, Practice, Auditors, Auditing Practices Board

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Auditor liability consultation underway

Article Abstract:

Consultation is underway on the potentially radical overhaul of directors' liability. The key auditor-related issue in the consultation document is whether auditors should be permitted to contract with their clients to limit their liability.

Accounting & Auditing Services, Accounting, Tax Preparation, Bookkeeping, and Payroll Services

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