Do auditors have any real risk?

Posted on / Financials - Negligence actions against auditors rise.

The FT notes:

The number of professional negligence lawsuits filed against accountants last year because of the credit crunch was higher than the total brought in the previous five years.

Research by Reynolds Porter Chamberlain, the law firm, found 13 large High Court suits were brought against accountants compared with four in the previous five years combined. No claims were brought in 2007 or 2008.

My emphasis added.

Isn't is staggering that not a single professional negligence claim was brought against auditors in 2007 or 2008? And that just 13 have been brought as a result of the massive collapse of the economy in 2008 - even when auditors gave no clue on concern in going concern warnings?

What does this say? That the balance of risk has shifted far too far in favour of the auditor? That all the nonsense about liability caps is just that? That the balance of power has shifted far too far in favour of the auditopr because it is now almost impossible to sue thjem unless a company has already failed?

All these things, I suggest.