On 16-17 December 2013, during their trilogue meeting, the Lithuanian EU Council Presidency, the European Parliament and the European Commission reached a preliminary agreement on the framework of the EU audit reform, which was endorsed by member states on 18 December in COREPER. It needs now the final nod of the European Parliament, planned for January 2014, and of the Council.
Sue Almond Technical Director at ACCA (the Association of Chartered Certified Accountants) says: 'ACCA congratulates the European Parliament, the Council and the European Commission for the agreement reached on the compromise text regarding the Proposals for a new Regulation and for amendments of the Directive on audit, after months of tough negotiations.
'It is important that we do not allow the recent controversies to overshadow some of the critical achievements of the negotiations of these measures. In particular, we have moved substantially closer to the adoption of a single set of international standards, which is critical for businesses operating in a global environment. We are therefore pleased to see progress on the adoption of International Standards on Auditing (ISAs) by the EU. Ethics, especially non-audit services, has clearly been an area where there are divergent views, but much of the detail that is contained in the proposed regulation on this issue is now in line with the International Ethics Standards Board for Accountants (IESBA), a step that we support. We are also pleased to see that the role of the audit committee has been recognised in overseeing the provision of non-audit services.'
'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. Audit plays a critical role in supporting global business and it is important that the profession now responds in a positive way that enhances the value of audit to companies and their stakeholders,' Sue Almond concludes.
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Notes to Editors
- ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
- We support our 162,000 members and 428,000 students in 173 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of over 89 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.
- Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.