pan-European regulator gains momentum
The German audit profession has backed a European Commission drive to create a pan-European accountancy regulator.
German officials feel that the body would force the US to back away from any plans to extend the new US accountancy oversight board’s jurisdiction to non-US audit firms.
The Institut der Wirtschaftspruefer represents 85% of public auditors in Germany. It envisages a European public company accounting oversight board, with five members approved by the EC.
The board will register all European audit firms, review the quality of oversight in EU states and file suits against national oversight bodies if necessary.
The move follows Accountancy Age reports that the EC has been considering such a move for some time. At an ICAEW conference in Bruges two weeks ago, Karel van Hulle, head of financial reporting and company law at the EC’s internal markets directorate, said proposals on regulation of audit had been tabled for discussion.