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Caparo
‘The Caparo case and the requirement for auditors to have compulsory professional indemnity insurance will result in a lowering of the standards of audits of the financial statements of limited liability entities. Also, the requirement of the Companies Act 2006 for all auditors to be registered is creating a monopoly, which cannot be beneficial to people relying on audited financial statements.' Note. The Caparo case is Caparo Industries plc v Dickman and Others.
Discuss whether you consider that the factors cited in the statement above will result in a lowering or raising of audit standards.
part - 1you are to reflect on how this case of china sky relates to what the arguments for and against allowing audit
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