Foreign auditor cooperation by 2009 says EU

The EU and the US intend to rely on each other’s audit oversight procedures
by 2009, Charlie McCreevy, the EU commissioner, said today.

Reports said the internal market commissioner was hoping to step up
cooperation over oversight,
. Currently, US regulator the PCAOB inspects audit firms in London
which have responsibility for US-listed clients.

Separately, The Department of Trade
and Industry
opened a consultation today on how it should proceed
when implementing the EU 8th
Directive, which could require the FRC to go abroad to inspect foreign auditors
where the companies they oversee are listed in London.

In its consultation document, the DTI said the exercise would mainly be one
of harmonisation and aligning audit and financial regulations across Europe.

The consultation does, however, propose some new rules which will have to be
introdcued to comply with the 8th Directive

Under one proposal, the DTI says that audit engagement partners should not be
able to move in as the FD of an audit client within two years.

The consultation closes on 1 June 2007

Further reading:

Read the
consultation document

European law: Harmonisation out of tune

Directive to harmonise markets

Related reading