‘Big Four’ accountants face audit reform

The European Commission tabled proposals on the 30 November 2011 to reform the European audit market. In the light of the 2008 financial crisis, important questions and doubts had been raised on the credibility and reliability of audited financial statements, notably those of banks and other financial institutions. Questions had also been raised on the role of auditors, their independence and the general sustainability of the current highly-concentrated audit market that is dominated by four large companies (the 'Big Four': Deloitte, Ernst & Young, KPMG and PwC).

The Commission proposals were aimed to address the weaknesses identified, by ensuring auditor's independence, robust supervision and by facilitating the creation of more capacity at the top end of the market.

ESO: Background information: Big audit firms face Brussels onslaught http://www.europeansources.info/record/big-audit-firms-face-brussels-onslaught/

EurActiv, 29.11.11: Brussels to announce audit sector shake-up http://www.euractiv.com/innovation-enterprise/brussels-announce-audit-sector-shake-news-509269

European Commission: RAPID: Press Release: IP/11/1480: Restoring confidence in financial statements: the European Commission aims at a higher quality, dynamic and open audit market http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/1480&format=PDF&aged=0&language=EN&guiLanguage=en

European Commission: DG Internal Market and Services: Auditing: Reform of the audit market http://ec.europa.eu/internal_market/auditing/reform/index_en.htm

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