PracticeAuditAmerica has put the mockers on EU audit reform

America has put the mockers on EU audit reform

Decision to prohibit mandatory rotation in the US puts question mark over EU audit policy

EUROPEAN POLICYMAKERS don’t seem the type to be in thrall to decisions taken on the other side of the Atlantic. Nevertheless, those steering the EC’s planned overhaul of the audit market through European parliament will no doubt have been dismayed by developments in the US.

Earlier this week, the US House of Representatives essentially slapped down attempts to force listed companies to change their auditors. The PCAOB had argued, via a concept paper released in August 2011, that mandatory rotation was needed to improve auditor independence. Sound familiar?

Politicians in Europe are currently wrangling over the shape of a series of audit market reforms, while the UK competition watchdog is cooking up a series of remedies aimed at breaking the Big Four’s dominance of the FTSE 100 audit market.

With so many firms – including the likes of Grant Thornton and BDO who are most likely to benefit from any change – against the idea of mandatory rotation (most appear to favour the FRC’s comply or explain approach to tendering) the argument for scrapping the EU plans has just gained considerable weight.

Related Articles

The future of the audit industry: From masses of data, to meaning

Audit The future of the audit industry: From masses of data, to meaning

11m Acccountancy Age
Deloitte scoops GSK 'mega audit' from PwC

Audit Deloitte scoops GSK 'mega audit' from PwC

11m Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

12m Kevin Reed, Writer
The impact of Brexit on EU audit reform

Audit The impact of Brexit on EU audit reform

1y Richard Crump, Writer
Audit Reform: The Conflict Minefield

Audit Audit Reform: The Conflict Minefield

1y James Roberts, BDO
BDO appointed new auditor of Game Digital as Deloitte ditched

Audit BDO appointed new auditor of Game Digital as Deloitte ditched

1y Stephanie Wix, Writer
BDO's 'agility' makes it well placed to succeed - Eagland

Accounting Firms BDO's 'agility' makes it well placed to succeed - Eagland

1y Kevin Reed, Writer
Friday Afternoon Live: Accountants in government; audit market concentration; Top 40 Networks

Audit Friday Afternoon Live: Accountants in government; audit market concentration; Top 40 Networks

1y Kevin Reed, Writer