Press Release: Accounting: Commission issues Recommendation setting minimum quality assurance standards for statutory audits

On 21.11.00, the European Commission adopted a Recommendation setting minimum standards for external quality assurance systems for statutory audits in the EU. External quality assurance systems have developed as a check on the quality of statutory audits that, under EU Accountancy Directives, are mandatory on some three million limited liability companies in the Union. The aim of quality assurance is to ensure that statutory audits are conducted in compliance with the established auditing standards and that the auditors respect ethical rules (including independence). The Recommendation lays down a comprehensive set of minimum requirements for quality assurance systems in Member States with a view to ensuring that all statutory auditors are covered by equivalent quality assurance systems with sufficient public oversight and published results. Its adoption will further improve the provision of reliable and comparable financial information by companies that is vital to the efficient functioning of EU capital markets. This will allowing optimal allocation of capital to companies while protecting the interests of investors and other stakeholders. The European Commission will review progress towards the harmonisation of quality assurance three years after the adoption of this Recommendation and reconsider the need for legislation if appropriate.

• Primary Source

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

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