incorporation of audit firms

Show Summary Details

Quick Reference

The forming of a limited company by an audit partnership to limit its liability against claims for negligence. This is permitted under the Companies Act; a limited company can be established, which is owned by the partnership. Although partners directly involved in an audit can be sued, incorporation should prevent other partners from losing everything they own merely because they are members of the partnership. See also limited liability partnership; professional indemnity insurance.

Subjects: Accounting.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.