Audits (Regulation)

Philipp Eckhardt

The Commission wishes to boost competition on the audit market by the obligation to change auditors regularly (“rotation rule”). A prohibition of non-audit services (e.g. tax advice) is to strengthen the independence of auditors.

cepPolicyBrief

The absolute prohibition of consultancy services and ceilings to the fees of auditors infringe the right to entrepreneurial freedom. If entities other than those audited are being consulted, no increased risks exist for the independence of auditors. Rotation rules are unnecessary: the danger of a conflict of interests can be also tackled by enhanced supervision. The EU does not have the competency to adopt a regulation.

Download PDF

Auditors COM(2011) 779 (publ. 06.30.2014)	PDF	143 KB	Download

cepAccompanyingDocument (publ. 06.30.2014)	PDF	31 KB	Download
Proposal for a Regulation COM(2011) 779 (publ. 06.30.2014)	PDF	264 KB	Download