Brussels, 13/03/2009 (Agence Europe) - The European Parliament deplores the fact that only twelve Member States have so far fully transposed Directive 2006/43/EC on the auditing of annual and consolidated accounts (see EUROPE 9039). It is concerned that key notions like public interest entities and networks are being interpreted differently and creating legal uncertainties, noting that many countries have not yet forced so-called “public-interest entities” (PIE) like banks and companies quoted on the stock exchange to set up audit committees. In addition, the EP doubts that the time for the compulsory change of auditors (two or three years) would improve the quality and continuity of audits. The directive allows a seven year maximum rotation period. The MEPs call on the Commission to carefully asset national legislation transposing the directive, particularly the impact of national derogations to rules governing the Single Market, and to report back in two years' time. Taking note of the recommendation on auditors' liability (see EUROPE 9678), the MEPs call for the European Commission to inform them about how the recommendation impacts on regulatory convergence. The MEPs do not wish to encourage in the EU a culture of taking auditors to court to claim damages from them. (M.B. trans fl)