Further agreement reached on EU audit reform proposals

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21 Jan, 2014

The Legal Affairs Committee (JURI) of the European Parliament has today endorsed the framework for EU audit reform agreed by the Lithuanian EU Council Presidency and the European Parliament in December 2013.

Under the new rules, the societal role of auditors will be clarified, with the aim of increasing audit quality and transparency. Mandatory rotation of auditors will be introduced, requiring companies to retender at 10 years and change the auditor at least every 20 years. The reforms include further restrictions on the provision of non-audit services to audit clients and prohibit the use of restrictive clauses in contracts which limit a company’s choice of auditor.  

The next steps will be for a plenary vote in parliament with indications on the European Parliament website that this will be in April. 

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