ICAEW backs revised EU audit directive

Link: EU rules out ban on non-audit work

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.

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