Britain's Department of Trade and Industry has pressed ahead with plans to protect auditors from lawsuits, amid fears that an excessive claim could bankrupt one of the remaining "Big 4" firms.

Accounting firms have until now faced unlimited liability for business collapses following an audit failure, but Company Law reforms, which go to Parliament this autumn, propose liability proportionate to the amount of blame.

This aims to prevent possible collapses which would reduce the number of accounting firms to a non-competitive oligopoly.

The DTI said in a statement: "The Government recognizes the importance of competition and choice as a driver of quality in the audit market."

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