PracticeAuditDTI consults on Europe-wide audit standard

DTI consults on Europe-wide audit standard

Views are being sought on proposals for new pan-European standards on auditor independence and audit quality following accounting scandals of recent years.

Link: The Debate – Additional training for audit committees

The draft directive, revealed by industry minister Jacqui Smith, is the European response to Enron, WorldCom and Parmalat and ‘in particular the questions these have raised about the role of the auditor’.

The key proposals are:

  • a new framework against which the statutory auditor can assess independence risks;
  • confirmation of the principles of auditor independence;
  • a new system subjecting statutory auditors to monitor and review in order to ensure consistent quality assurance; and
  • moves to encourage convergence and the development of common principles of public oversight of the audit profession while leaving the organisation this activity to individual Member States.

Smith said: ‘In many ways the proposals in this draft Directive reflect Britain’s own approach to improve standards in auditing and auditor independence since the scandals of Enron and WorldCom in the US.’

The deadline for replies to the consultation is 30 November 2004.

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

6d Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

2w Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter