Press Release: Accounting: Commission launches consultations on independence of statutory auditors

On 18.12.00, the European Commission issued a consultative paper on 'Statutory auditors' Independence in the EU' inviting comments by 2.3.01 on a proposed set of fundamental principles with which auditors should comply when carrying out statutory audits. Under EU Accountancy Directives statutory audits are mandatory on some three million limited liability companies in the Union. The Commission will take into account these comments when drafting a Recommendation on statutory auditors' independence, due to be adopted mid-2001. The consultative paper suggests a principles-based approach that would not impose detailed rules but establish a framework outlining the general issues of statutory auditors' independence. This framework would be complemented by a set of specific requirements that a statutory auditor should apply. The forthcoming Recommendation will further improve the provision of reliable and comparable financial information by companies that is vital to the efficient functioning of EU capital markets. It forms part of the Financial Services Action Plan to create an integrated financial services and capital market in the EU by the end of 2005

http://ec.europa.eu/comm/internal_market/auditing/independ/index_en.htm http://ec.europa.eu/comm/internal_market/auditing/independ/index_en.htm

---