EU AUDIT DIRECTIVE
March 1st, 2004
BY KEITH NUTHALLTHE EUROPEAN Commission has tabled a directive that would insist statutory auditors avoid conflicts of interest when carrying out additional work for client companies, although its proposals do not suggest an outright ban on subsidiary contracts. The proposal insists auditors be "independent from the audited entity and not in any way involved in management decisions." The detailed directive has been inspired by the Parmalat and Ahold scandals, and includes rules on auditing EU multi-national firms. These insist an auditor of a group's consolidated ...
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