The Big Four could be left exposed to a surge in negligence claims following a government decision to refuse to limit further damages audit firms could face. PricewaterhouseCoopers, Ernst & Young, KPMG and Deloitte have lobbied for a cap on statutory liabilities - at present there is no limit to what an auditor can be liable to pay - but although senior figures involved in discussions said that the business secretary Lord Mandelson listened to their concern, the law has not been changed. The current economic climate is resulting in an increase in lawsuits for firms, many relating to Bernard Madoff's 'ponzi' scheme, and many fear the law will not be subject to change for another two years, The Times reports. Concerns have been raised that audit firms will be targeted by investors and liquidators looking to recover losses from Madoff-type frauds and failures of big companies. Representatives of the firms met Mandelson in April to discuss placing caps on auditor liability, following fears that a gigantic lawsuit could be the demise of a Big Four firm. But an official of the Department for Business, Innovation and Skills said: 'The 2006 Companies Act already allows auditor liability limitation where companies and their auditors want to take this course.'