Brussels, 13/07/2007 (Agence Europe) - On 12 July, the European Commission published a summary of the response to its recent public consultation on the regulation of non-EU audit firms (see EUROPE 9343) in connection with directive 2006/43/EC on the auditing of annual and consolidated accounts. Overall, the 41 participants in the consultation exercise approve the European Commission's approach in this domain, namely to encourage the introduction of regulation and public controls of auditing firms in non-EU countries, avoiding disruption of capital markets in the EU.
Respondents also welcomed the idea that the Commission should assess and decide on equivalence of non-EU countries' public supervision systems. In particular, they supported the introduction of transitional measures for the non-EU audit firms concerned to foster the development of effective regulatory systems and to prevent market fragmentation. Many respondents were unhappy about differences among EU member states when it comes to registering non-EU audit companies, emphasising the need to develop a system of cooperation in registration procedures, with the idea of a European audit passport seeming to gain ground. The European Group of Auditors' Oversight Bodies (EGAOB) was considered to be the appropriate forum in which to agree on cooperation in registration procedures. Most respondents oppose the idea of non-EU auditing companies being forced to use the accounting standards of the different member states where they do business. (mb)