International Auditing

New trust in corporate financial statements: European Commission reforms auditing

The main points summarized:

Mandatory rotation of audit firms: Audit firms will have to change (with some exceptions) after a period of employment of up to six years.

Mandatory tendering: Public interest entities are obligated to have an open and transparent tender procedure when selecting a new auditor.

Auditors must not provide non-audit services to their clients.

Practice of the profession of auditors throughout Europe: The Commission plans to create an internal market for auditors with a European passport for audit firms.