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November 29, 2012

Juri struggles to agree on audit reform

A meeting of the European Parliament Committee on Legal Affairs (Juri) revealed conflicting amendments to the draft audit market regulation document published by the committee’s reapporteur Sajjad Karim in September.

The main areas of friction are around are some of the key areas such as the provision of non-audit services and mandatory rotation.Karim said there are five key points that still need further debate before a compromise can be reached within the committee including the definition of a public interest entity (PIE), the content of the audit report, the provision of non-audit services, the appointment and re-appointment of the auditor of PIEs or the so called mandatory rotation and the legal form of the proposals.

In response to Karim’s report 900 amendments were submitted and as this month’s debate was cut short the final document is likely to be delayed until early next year with the vote on the final document expected in February next year. Initially the vote was scheduled for December.

The MEPs speaking at the committee meeting had contradicting views with some arguing to completely dismiss audit market regulation and called for a directive instead. On the opposite side of the spectrum, some MEPs called for the document to be more closely aligned with the initial proposals by the European Commission.

The debate on the amendments is expected to carry on at the December meeting of the Juri committee.

Related articlesAudit market reforms diluted by Juri

Juri scraps mandatory rotation and audit-only firm proposals

 

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