Implications and requirements of the new European regulation in the Member States

Author:Victor KEVEHAZI, KPMG

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Keywords:certification, promoting quality, public oversight, public interest entities, statutory audit

Abstract:
The basic idea is to introduce a minimum standard of quality for the audit profession in the European Union. As the business become more international with many cross border transactions within the European single market, it becomes more and more important to know that the auditors in a given Member State apply the same standards as the auditors in another Member State. At the same time, to apply a common set of standards facilitates the mobility within the profession. This way, the certified auditors can freely move from a member state to another, creating a better flexibility within the profession and allowing it to become multinational. \r\n\r\nThe public oversight profession should be transparent, publishing the annual working programs and activity reports and the statutory auditors should not influence their financing. Romania should establish such a competent authority to fulfill these functions with a special focus on the need to ensure its independence. Indeed, the responsibility of the public oversight authority will be very big and extremely important because will change how the quality assurance is made in the public audit today.\r\n

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