Parliament brings the audit reform to its final stages 

ACCA (the Association of Chartered Certified Accountants) welcomes the endorsement of the audit package by the European Parliament.

Sue Almond, external affairs director at ACCA, says: ‘ACCA congratulates the effort to increase audit quality and re-establish investor confidence in financial information. The long-running EU audit debate has resulted in a highly complex legislative package that will have far-reaching consequences in improving transparency and accountability”.’

Sue Almond adds: ‘The final position is a balanced compromise that will enhance the functioning of the single market and stimulate economic growth. Promoting auditors’ independence, objectivity and healthy competition is a pivotal element in restoring public trust in the audit, and in the auditing profession.’

‘ACCA is pleased with the adoption of high-quality global standards, including International Standards on Auditing (ISAs), and welcomes the concept as a way to enhance value from the audit. We support increased transparency by the Audit Committee of its policy for audit tendering and the rationale for change. We believe that the Audit Committee is best placed to determine the most appropriate provider to deliver specific non-audit services, assess the independence of an auditor and to make appropriate recommendations’ explains Sue Almond.

‘ACCA is keen to see the debate on audit refocus on a higher level, especially the value of audit and its broader societal contribution. We think it is critical to take into consideration the needs of business and investors across the EU and the practical impact the reform package will have on them. The challenge of this legislation now is a consistent application in member states. It is important for this to be done in a way that there is no gold-plating and it does not impose unnecessary burdens on business’ concludes Sue Almond.

Source: accaglobal

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