- July 15, 2017
- Posted by: Stefan
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.