Auditors could have to choose between audit and offering other more lucrative services to their financial clients, according to proposals from MPs that could have far-reaching implications for accountants and all companies.

In its report into the banking crisis published on Friday, the Commons Treasury committee recommends auditors should be banned from doing any non-audit work for the financial companies they audit in an effort to boost investor trust in the audit process. Currently, auditors can do a significant amount of non-audit work for their clients within strict guidelines drawn up after the Enron and WorldCom accounting scandals.