European Commission proposes new audit and governance rules
17 Mar 2004
The European Commission is proposing major revisions to its rules in the areas of auditing standards, auditor oversight, and related corporate governance.
The proposals, which are somewhat along the lines of the Sarbanes-Oxley Act in the US, are set out in a proposed Directive on Statutory Audit of Annual Accounts and Consolidated Accounts. The new Directive would replace the current 8th Directive and amend the 4th and 7th Directives. Some of the proposals in the new Directive are:
The Commission has asked the European Parliament and the Council to consider the proposal in detail in the second half of 2004 with the aim of "fasttrack" adoption by mid-2005. There would then be a period of 18 months for member
states to implement it in national law. Click to download:
PROPOSALS IN DRAFT EU DIRECTIVE ON AUDITING
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