Companies Act 2014 section 1525

No liability for acts done in compliance with obligations imposed by relevant provisions

Section 1525 provides that statutory auditors and audit firms are protected from liability when they act in compliance with obligations imposed by the relevant statutory provisions, while preserving liability for negligence or breach of duty in the conduct of an audit.

• Compliance with obligations under the relevant provisions does not constitute a breach of any professional or legal duty arising from the auditor's appointment
• No liability attaches to the auditor or audit firm towards the audited entity, its shareholders, creditors, or other interested parties as a result of such compliance
• This protection does not shield auditors from liability for negligence or breach of duty in how they actually conduct a statutory audit
• The section draws a clear distinction between fulfilling statutory obligations (protected) and the standard of care in performing audit work (not protected)