Corporate Sector Accounting and Auditing in the EU Acquis Communautaire, 3rd Edition
This report reflects significant changes in European Union (EU) corporate financial reporting since 2011. In June 2013, a new accounting directive was adopted, replacing the fourth and seventh directives on company law. A directive amending the 200...
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Vienna
2016
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/05/26396263/corporate-sector-accounting-auditing-eu-acquis-communautaire http://hdl.handle.net/10986/24427 |
| Summary: | This report reflects significant changes
in European Union (EU) corporate financial reporting since
2011. In June 2013, a new accounting directive was adopted,
replacing the fourth and seventh directives on company law.
A directive amending the 2006 audit directive and a new
audit regulation addressing oversight of the most
significant audits were adopted in April 2014. The new
legislation, summarized in this guide, is a result of
several years of drafting and discussions following the
financial crisis of 2008 and it represent a landmark in the
EU’s efforts to strengthen its corporate sector accounting
and auditing. The accounting directive seeks to enhance the
quality of financial reporting and expand it, especially
with regard to public interest entities, while reducing the
administrative burden for smaller companies. The new audit
reporting requirements introduced by the regulation are
expected to increase the usefulness of statutory audits of
public interest entities, such as listed companies, credit
institutions, and insurance undertakings, and reduce risks
of excessive familiarity between statutory auditors and
their clients, encourage professional skepticism, and limit
conflicts of interest. The audit directive and the
regulation will bring more consistency in audit oversight
and quality assurance systems across Europe. Implementation
will involve significant challenges and require increased
resources to ensure systems function effectively. |
|---|