Memo: Commissioner Michel Barnier welcomes provisional agreement in trilogue on the reform of the audit sector

Commissioner Michel Barnier on 17 December 2013 welcomed the agreement reached between the European Parliament and EU Member States on the reform of the audit sector.

This is a first step towards increasing audit quality and re-establishing investor confidence in financial information. With the agreement, audit firms will be required to rotate every 10 years. Public interest entities will only be able to extend the audit tenure once, upon tender. Under this measure, joint audit will also be encouraged.

• Primary Source

ESO: Background information: EU talks on auditor switching put on hold http://www.europeansources.info/record/eu-talks-on-auditor-switching-put-on-hold/

ESO: Background information: Deal on company auditing edging closer: EU lawmaker http://www.europeansources.info/record/deal-on-company-auditing-edging-closer-eu-lawmaker/

Council of the European Union: Press Release, PRES/13/597: Agreement on the reform of the audit market http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/intm/140170.pdf

EurActiv, 18.12.13: EU seals agreement on audit sector shake-up http://www.euractiv.com/euro-finance/audit-reform-agreement-brokered-news-532426

---