496. Terms of liability limitation agreement

(1) A liability limitation agreement —
(a) must not apply in respect of acts or omissions occurring in the course of the audit of accounts for more than one financial year, and
(b) must specify the financial year in relation to which it applies.
(2) The Board may make rules —
(a) requiring liability limitation agreements to contain specified provisions or provisions of a specified description, and
(b) prohibiting liability limitation agreements from containing specified provisions or provisions of a specified description.
"Specified" here means specified in the rules.
(3) Without prejudice to the generality of the power conferred by subsection (2), that power may be exercised with a view to preventing adverse effects on competition.
(4) Subject to the preceding provisions of this section, it is immaterial how a liability limitation agreement is framed.

In particular, the limit on the amount of the auditor's liability need not be a sum of money, or a formula, specified in the agreement.