ICAEW backs revised EU audit directive
ICAEW president David Illingworth has welcomed the principles-based approach that has been adopted in the revised Eight EU Directive on statutory auditing.
Despite a significant move away from a rules-based approach, the institute was still concerned that the directive was too prescriptive in the areas of oversight of the profession, quality assurance and education.
The institute said it supported the principles-based ‘threats and safeguards’ approach to auditors providing non-audit services to its clients.
‘We believe that absolute prohibition of services, which may be provided to audit clients, is unnecessary and would be detrimental to economic competitiveness and the quality of the accounting profession,’ said Illingworth.