European Union Statutory Audit Rules Impact Public-Interest Entities
New European Union statutory audit rules are aimed at encouraging high-quality audits and improving investor trust in companies’ financial information. Announced in the European Commission’s June 17 press release , the new rules feature major provisions for statutory audits of public-interest entities. Such provisions include mandatory auditor and audit firm rotation, increased details in the report to the audit committee, and fees for acceptable non-audit services limited at 70 percent of audit fees, based on a three-year average and calculated at the group level. More on the European Union’s new statutory audit rules is available in the Fact Sheet and European Commission’s published guidance, Reform of the EU Statutory Audit Market – Frequently Asked Questions .
PCAOB & Danish Business Authority Form Cooperative Agreement
To help oversee audit firms bound by regulatory jurisdictions, the Public Company Accounting Oversight Board (“PCAOB”) has announced a cooperative arrangement with the Danish Business Authority (“DBA”). Similar to arrangements with European Union members and other regulators, the PCAOB’s agreement with the DBA provides framework for shared inspections and information exchanges compliant with the Dodd-Frank Act. Due to the reform’s provisions, the PCAOB can share confidential information with non-U.S. counterparts in certain situations. Additionally, a pact concerning data protection is part of this cooperative arrangement. Since establishing a non-U.S. inspection program in 2004, the PCAOB has performed inspections in 44 jurisdictions outside of. Read More.