Changes to Audit Regulations

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Audit European Parliament is discussing amendments to the Directive on Statutory Audit and the Regulation requirements regarding the audit of public-interest entities, in the hope of improving the quality of audits across the entire European Union, and there for making auditor’s key contributors to economic and financial stability. Some of the key measures to be included in the regulations are: An increase to audit quality, requiring a more detailed and informative report with significant data for investors. Stricter and improved transparency will be amongst the new requirements. Greater accountability by auditors, with the committees designed to supervise and regulate auditors being reinforced, and shareholders being empowered to initiate actions to dismiss auditors. An enforced rotation of audit companies, public-interest entities will be required to rotate their statutory auditors after the maximum allowable time of 10 years, however this period can be extended to a further 10 years if tenders are put out and by a further 14 years should multiple audit firms be used. Audit firms play an important role by providing investors and shareholders with an opinion on the accuracy of company accounts. The 2007 -2008 financial crisis brought to light many of the problems caused by bad accounting and bookkeeping combined with poor audit services.
Accounting responsibilities
The legal responsibility for maintaining and managing bookkeeping and accounting records falls to the management of the company and with regulations tightening it is becoming even more important. One of the many services that Eltoma Corporate Service can provide is bookkeeping and accounting maintenance. For more information go to our page on IFRS Compliant Accounting Standards.