France set to impose auditor restrictions
Audit firms working in France are set to face tough new measures on auditor independence, which may severely restrict the type of work they can undertake in the future.
The new rules, which are due to be debated today, are expected to place a ban on lucrative work such as tax planning, in a bid to reduce possible conflicts of interest.
Already, Big Four firm PricewaterhouseCoopers has hit out at the proposed new legislation on auditing.
PwC’s global head Sam DiPiazza was quoted in the Financial Times as saying the new rules ‘go a long way past what we think is a good idea for creating high quality audits’.
However, he did stress that his firm would comply with the French government’s requirements.
Believed to be amongst the toughest new auditing rules to be put in place, they will result in a new supervisory body called the ‘Haut Conseil du Commissariat aux Comptes’, which will draw up new rules on auditor independence