Auditors get US boost in liability battle

John Castellani, president of the Business Roundtable, a lobby group comprising the CEOs of some of America's biggest public companies, said he was in favour of limiting auditors' liability.

He cited his fear of a Big Four being reduced to a Big Three as a result of a large liability claim as his main concern.

He also disagreed with the UK's Office of Fair Trading by saying that a limit on liability could help increase choice by encouraging the smaller firms to compete with the Big Four.

'There are other accounting firms that could develop a global capability, similar to the Big Four, but shy away from it because of the increased liability and exposure to lawsuits,' Castellani told the Financial Times.