Brussels, 15/04/2014 (Agence Europe) - On Monday 14 April, the Council of the EU concluded the legislative procedure reforming the audit market from 2016 (see EUROPE 11053).
In order to make the audit market more competitive, the directive prohibits contractual clauses that demand auditing be restricted to the “Big Four”. Banks, insurance companies and firms listed on the stock exchange will be obliged to launch a call for tender when selecting a new auditor. A system of mandatory rotation of auditors after a period of 10 years has also been introduced in the EU. This length of time can be extended by 10 years if the company audited launches a call for tender. It can even be extended by 14 years in the event of joint auditing.
A blacklist outlines the services that have an impact on the financial areas that an auditor will no longer be authorised to provide to a client for whom it has certified the accounts (e.g. tax consultancy services). (MB)