The ACCA (the Association of Chartered Certified Accountants) has welcomed the recommendations of the European Commission (EC) and the emphasis it puts on the role of the
audit committee. Sue Almond, technical director at ACCA says statutory audit plays a pivotal role in business and promotes the causes of transparency, accountability and sound financial management.
ACCA members also welcomed the willingness to improve communication through more effective dialogue between auditors, audit committees, regulators and supervisors.
MEP Sebastian Valentin Bodu says the EC must seek to ensure that it does link the independence of auditors to the financial crisis. "An auditors' job is to assess financial reports, they are not in charge of assessing risky financial products”, he says.
The reforms will also result in a separation of auditing from consulting and auditing firms will not be permitted to offer non audit services. Auditing firms will also have to stop acting for companies every six years and take a break of four years before the same company can rehire them.
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