THE PROPOSED OVERHAUL of rules governing company auditors have been watered down in a draft report published by European parliament’s legal affair committee.
The draft report published by British MEP Sajjad Karim, who is steering the reform through parliament, suggested ditching key elements of the European Commission’s radical plans to inject more competition into the market for large company audits.
The EC tabled proposals that would require companies to change their auditor every six years, and introduce caps on market share that would force the Big Four accountancy firms – PwC, Ernst & Young, KPMG and Deloitte – to split the provision of audit and non-audit services.
Karim’s report, published on the assembly’s website last week, said that auditor rotation should only have to take place every 25 years, while share caps should be scrapped entirely.
Karim is due to outline his proposals on 17/18 September.
The Competition Commission is due to reveal the findings of its own probe into the UK audit market in October.
Audit red tape is impacting both ends of the market, according to the latest watchdog stats
EY has appointed Janet Dawson as its global and UK&I government & public sector assurance practice leader
The NAO has made record financial savings for the taxpayer, equivalent to £19 saved for every pound spent, according to its annual report
Given the events of the past week as we enter new territory our SMEs now more than ever need the support of their accountants, writes Bobby Lane