The Companies bill, soon to get its final parliamentary reading, contains two significant provisions for auditors.

First, it replaces "joint-and-several" liability by "proportional" liability, to be achieved by contract with the company and shareholder approval. Second, "knowingly or recklessly" issuing a false or deceptive audit report will be a criminal offence subject to a fine (but not imprisonment). Similar provisions apply to directors. The criminality provision is viewed as a quid pro quo for the liability concession.