In the wake of a number of audit scandals, the cost of professional indemnity insurance (PII) for accountants and auditors has risen sharply in the UK. Citing one auditor who said insurance costs had doubled into the ‘tens of millions’, The Sunday Times reports this could create a significant hurdle for challenger firms that want to take on bigger clients.

Increased PII costs were inevitable in the wake of the malpractice scandals of recent years and the belated ‘get tough’ attitude of the Financial Reporting Council and its willingness to hand out multi-million-pound fines.

 “There’s no question the challengers face headwinds and the cost of insurance could be one of them,” the newspaper quoted Paul Boyle, former CEO of the FRC (2004-2009) as saying.