European Accounting Body Expresses Broad Support For Audit Rules Revamp

by Ulrika Lomas, for LawAndTax-News.com, Brussels

29 May 2003

The European Union's package of proposals for the improvement and harmonisation of the quality of statutory audits throughout the EU has been broadly welcomed by the European Federation of Accountants, according to reports.

Speaking to the Irish Independent last week, FEE president, and Dublin-based PricewaterhouseCoopers partner, David Devlin announced his support for the 10 short and medium-term proposals unveiled by Internal Market Commissioner, Frits Bolkestein, but suggested that provisions pertaining to the creation of new audit committees could create problems, especially for firms based in the Republic.

According to the Irish newspaper, Mr Devlin warned that in its current format, the proposed legislation would create separate committees to oversee every single subsidiary of a firm. In the case of some of Ireland's largest companies, he continued, this could amount to more than 50 separate audit committees.

'I hope they change it, but who knows, they haven't yet,' the FEE chief revealed last week. However, he added that: 'It's not a reaction to US scandals, the Commission already had planned auditing reforms in mind and we support it.'

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