• Register
Return to: Home > News > Regulation > Profession remains cautious on EU preliminary agreement of audit reform

Profession remains cautious on EU preliminary agreement of audit reform

The accounting profession has welcomed the preliminary agreement between the Lithuanian presidency of the Council of the European Union (EU) and the European Parliament (EP) on the framework of the EU audit reform, but concerns remain.

Earlier today, the EU Council announced that a preliminary agreement had been reached with the EP on the framework of the EU audit reform, and that the agreement will be subject to approval by the Committee of Permanent Representatives (COREPER), later in the week.

Until the member states have approved the agreement the details of the package won't be made public.

Commenting on the announcement, ICAEW chief executive Michael Izza said "there is now hope for all the required follow-up work to be completed before, rather than be stalled by, the EU elections next year".

He added that the reform carried a lot of new requirements, some of which will automatically be translated into law at country level and some that will take longer to trickle through.

"While we have been concerned about certain parts of the proposals, focus now needs to move to the transition and practical implications," he said. "It will take time for everybody involved - the profession, businesses, regulators - to work through the details and get to grips with all the changes."

The Association of Chartered Certified Accountants technical director Sue Almond, welcomed the preliminary agreement reached by the two EU institutions and said the challenge for the audit profession will be to implement these changes in a way that helps restore public confidence in the audit, and in auditors.

However Grant Thornton International director Nick Jeffrey remained sceptical about the announcement and said he didn't think there can be said an agreement has been reached so far, even in principle.

"To be able to say there is agreement we need to know that each of Parliament, Council and Commission have agreed. I don't know that all of Council, Parliament and Commission have been in the same room today," he said. "And if bilateral [talks] are happening, the Presidency will need to put any agreement to COREPER on Wednesday, which will not obviously get approved if position is different to the negotiating mandate."

Related article

Agreement reached on the EU audit reform

 

Top Content

    Time pressure: Facing up to mental health

    In an ‘always on’ culture, it is becoming increasingly difficult to manage a healthy work-life balance. While companies are beginning to address this problem by introducing different support systems, Joe Pickard finds more could be done to ensure the wellbeing of the professions workforce.

    read more

    Venezuela: the race for the dollar

    With a new currency following hyperinflation, large sections of the population emigrating to neighbouring countries, an economy on the brink of collapse and no apparent solution coming from the government, Jonathan Minter finds a profession struggling to stay afloat in Venezuela.

    read more

    Brazil: transparency and control

    Brazilian accountants have an optimistic view of the impact of more-regular reporting and the implications of audit controversies for the profession. Paul Golden reports.

    read more

    Argentina: looking for a clearer view

    The Argentine accounting profession continues to grapple with the impacts of a weak economy and a culture of financial corruption. Paul Golden takes a closer look.

    read more

    Blockchain: adapting to disruptive tech

    In the relatively few years since digital currencies first began using blockchain technology, the array of potential applications has grown significantly – and continues to expand. Dan Balla, Matthew Schell and Dave Uhryniak from Crowe look at how it impacts accountancy.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.