Auditors playing safe

In different fora Ernst & Young, and PricewaterhouseCooper (PwC), have revealed that they and others have ‘resigned from and turned down’ audit work for companies which they consider have insufficient accountancy and management controls. ‘As auditors we are increasingly aware that we will surely be sued by policyholders and creditors if insurers we audit go bust.’ PwC has gone further, saying it is likely to drop companies that are unprepared to pay for additional services such as risk assessment, which would help completion of a proper audit.