Auditor rules need time to bed down

A halt to reforms on auditor independence has been called for by Europe’s
accountants, in order to give recently introduced standards time to bed down.

A survey by the European Federation of Accountants (FEE) has found that while
improvements in auditing ethics are beginning to take hold, further time is
needed for the changes to be fully incorporated before any additional
improvements are put forward.

‘The principles-based approach to auditor independence as set out in the EU
Recommendation on Independence is now widely used throughout Europe,’ said FEE
president David Devlin. ‘It is important that there be a regulatory pause to
allow this new approach to auditor independence time to prove its worth to users
of audit reports.’

The survey of FEE member bodies found that over three quarters of EU member
states have now adopted the principles of the EU’s Recommendation on
Independence, which endorses a principles-based threats and safeguards approach
to independence.

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