The Department for Business Enterprise and Regulatory Reform (BERR) has commented on the responses received to its recent consultation (in February this year) following the implementation of provisions relating to Limitation Liability Agreements and offences against auditors in the Companies Act 2006.
The new offences against auditors will apply in relation to audit reports on accounts in respect of financial years beginning on or after 6 April 2008. Guidance relating to the offences will be in place by that date. BERR will consult further with interested parties on this issue later this year.
BERR has also confirmed that any Limitation Liability Agreements entered into between a company and its auditor should disclose, in a note to the company’s accounts, the principal terms of the agreement and the date of the shareholder resolution approving the agreement or waiving the need for such approval.