FEE seeks better financial reporting through audit committee improvements
19 Jun 2012
The Federation of European Accountants (Fédération des Experts-comptables Européens, FEE) has published a Discussion Paper calling for improvements to the functioning of audit committees, which are considered "essential for the quality of financial information provided by companies".
The Discussion Paper explores the role of audit committees in corporate governance, and divergence in audit committee functions and composition across Europe. The paper recommends numerous legislative and other responses which would enhance the role of audit committees, such as requiring the audit committee to be a subcommittee of the board of directors with an independent chair.
Furthermore, the paper outlines the suggested roles of the audit committee, which would assist in improved financial reporting. For example, transparency of audit committee work could be improved through formally advising the board on judgements and conclusions of the audit committee in relation to key or critical accounting policies and estimates. Numerous other audit-related and corporate governance recommendations are included.
The Discussion Paper is open for comments until 28 September 2012. Click for FEE press release (link to FEE website).
