Accountants need to be prepared for a significant increase in the volume of legal claims against them, a leading law firm has warned.
The fallout from the subprime mortgage crisis and the credit crunch has dominated the business and personal finance pages of the newspapers in recent months.
Most of the column inches have been devoted to the impact on mortgage holders but, with many businesses also adversely affected, Andrew Howell of Barlow Lyde & Gilbert believes it is only a matter of time until attention turns to the role of the accountancy profession.
"Given market volatility, it is probably no longer a question of whether claims will be made against accountants, but how many," he told Accountancy Age.
Valuation issues, which have become much more complicated since economic conditions changed, and the accuracy of audit work are both likely to come under increased scrutiny in the current climate, Mr Howell added.
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