Released 16 June 2004. Comment closed 30 July 2004.

This policy proposal sets out what we consider are adequate and appropriate professional indemnity insurance arrangements for an AAC under cl 1299B of the CLERP 9 Bill. For further details about the registration of auditors including AACs, see our policy proposal paper CLERP 9 Bill: Auditor registration (issued 5 April 2004).

The requirements in this paper have been proposed in the context of the particular statutory provision in cl 1299B of the CLERP 9 Bill. AACs are not prevented from obtaining additional insurance cover and should consider their own circumstances carefully in determining whether additional insurance is required. In addition, these policy proposals do not relate to individual auditors employed by an AAC. Audit clients may have a right of recourse against individual auditors in addition to rights against the AAC that employs them.

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