MEPs dilute audit reform rules

European Union plans forcing companies to change accountants regularly were watered down the 25 April 2013, providing some relief for the "Big Four" auditors that check most large company books.

The European Parliament’s legal affairs committee backed allowing companies to keep the same accountant for up to 25 years, significantly diluting original proposals calling for a switch every six years.

The six-year proposal ran into a barrage of criticism from companies and investors claiming that such a provison would cost companies in time and manpower involved in the re-tendering process.

The lawmakers also ditched a controversial part of the European Commission's draft reform, caps on audit market share, that could have seen the four firms that dominate the industry - KPMG, PwC, Ernst & Young and Deloitte - being split up.

ESO: Background Information: Battle brewing over new rules for auditors http://www.europeansources.info/record/battle-brewing-over-new-rules-for-auditors/

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